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Form 100. Personal Income Tax Return Declaration 2017

Financial expenses

This includes all expenses arising from the use of third-party financial resources to finance the company's activities or its assets.

Limitation on the deductibility of net financial expenses (art. 16 Law I. Companies)

Net financial expenses are understood to be the excess of financial expenses over financial income.

The limit for deducting net financial expenses for the year will be determined by the highest of the following amounts:

  1. An amount equivalent to 30% of the operating profit for the period.

  2. One million euros, if this is higher than the previous limit of 30 percent of operating profit.

Net financial expenses are considered deductible up to an amount of 1 million euros.

The amount of net financial expenses that, where applicable, have not been subject to deduction in this fiscal year, may be deducted in the following 18 fiscal years.