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Issues to consider when settling the tax in 2024

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Modification of the limitation on the deductibility of financial expenses

Effective for tax periods beginning on or after January 1, 2024, the Fifth Final Provision of Law 13/2023, of May 24, modifies article 16 of the LIS with the aim of adapting it to Council Directive (EU) 2016/1164 of 12 July 2016.

For these purposes, the following new features are established:

  • Article 16.1 of the LIS is modified to exclude of the determination of operating profit income, expenses or revenues that have not been included in the taxable base of this Tax.

  • Article 16.6 of the LIS is modified to exclude from non-application of the limitation provided for in said article to the mortgage securitization funds, regulated by Law 19/1992, of July 7, and the asset securitization funds referred to in Additional Provision Five.2 of Law 3/1994, of April 14.

Keep in mind:

Expenses and income that form part of operating profit and are subject to a permanent adjustment, should be excluded from the calculation of the operating profit for the period. Instead, should not be excluded from the calculation of the operating profit for the period, the income or expenses that form part of said profit and that are subject to a temporary extra-accounting adjustment. This is the case of the impairments regulated in Article 13 of the LIS and the temporary imputation of income by applying the term transaction criterion set out in Article 14 of the LIS.