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Form 100. 2018 Personal Income Tax return

Financial expenses

All expenses arising from the use of third-party financial resources are included for the financing of the company's activities or its assets.

Limit on the deductibility of net financial expenses (Article 16 of the Companies Act)

Net financial expenses are understood as excess financial expenses with respect to financial income.

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

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

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

Net financial expenses are considered to be deductible up to the amount of €1 million.

The amount of the net financial expenses that, if applicable, have not been deducted in this financial year, may be deducted in the following 18 years.