Non deductible expenses

Non-deductible expenses include:

• Fines and penal and administrative sanctions, urgency charges and surcharges for late filing of returns/assessment and self-assessments.

• Donations and liberalities

  No donations or liberalities are considered to be expenses for public relations with customers or suppliers or those that, according to the uses and customs, are they are carried out with regard to the company's personnel, or those carried out to promote, directly or indirectly, the sale of goods and the provision of services, or those that are correlated with income. However, these expenses are subject to the limit of 1% of the net turnover for the tax period.

• Allowances for provisions or internal funds for the coverage of contingencies identical or similar to those covered by the Pension Plans

• Contributions to Mutual Societies for Social Welfare of the employer or professional, without prejudice to the fact that they may be subject to a reduction in the general part of the taxable base .

  However, amounts paid under insurance contracts with mutual benefit societies by professionals will be considered deductible expenses not included in the Social Security special scheme for self-employed workers, when, for the purposes of complying with the obligation provided for in section 3 of the fifth transitional provision and in Additional Provision fifteen of Act 30/1995 of 8 November, on the Planning and Supervision of Private Insurance, act as alternatives to the special Social Security regime mentioned above, in the part that the purpose of this policy is to cover contingencies handled by the Social Security Institute, with a limit of 4,500 euros per year (article 30,1 of the Act).

• The expenses of services corresponding to operations carried out, directly or indirectly, with people or entities resident in countries or territories classified by regulation nature of tax havens, or that are paid through persons or entities resident in them, unless it is proven that the expense is due to an actual transaction or transaction carried out.

• The amounts that, for the application of floor clauses, had been paid by the taxpayer in 2018 and with respect to which, before the end of the period for filing the tax return, the agreement to return the tax returns with the financial institution or in compliance with court rulings or arbitral awards will be reached, it will not be considered a deductible expense.

• Personnel expenses corresponding to compensation derived from the termination of the employment relationship, whether common or special, or the business relationship, of directors or members of the Boards of Directors, of the Boards that make their times and other members of other representative bodies, produced from the 1 January 2013, when the greater of the following amounts are exceeded for each recipient.

  1. 1,000,000 Euros.

  2. The amount established as mandatory in the Workers'Statute for dismissal or termination.