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Form 100. Personal Income Tax Declaration 2018

Financial expenses

All expenses derived from the use of third-party financial resources to finance the company's activities or its asset elements are included.

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 with respect to financial income.

The limit to deduct 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 were higher than the previous limit of 30 percent of operating profit.

It is considered that up to the amount of 1 million euros the net financial expenses will be deductible.

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