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Form 100. Personal Income Tax Declaration 2018

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

    Expenses for public relations with clients or suppliers are not considered donations and liberalities, nor those that, in accordance with customs and practices, are made with respect to the company's personnel, nor those made to promote, directly or indirectly, the sale of goods and services. provision of services, nor those that are correlated with income. However, these expenses are subject to the limit of 1 percent of the net amount of turnover for the tax period.

  • The allocations to provisions or internal funds to cover contingencies identical or analogous to those that are the subject of the Pension Plans

  • Contributions to Social Security Mutual Funds from the businessman or professional himself, without prejudice to the fact that they may be subject to a reduction in the general part of the tax base .

    However, amounts paid under insurance contracts concluded with social security mutual societies by professionals not integrated into the special Social Security regime for self-employed or self-employed workers will be considered deductible expenses when, for the purposes of comply with the obligation provided for in section 3 of the fifth transitional provision and in the fifteenth Additional Provision of Law 30/1995, of November 8, on the Regulation and Supervision of Private Insurance, act as alternatives to the special regime of the Social Security mentioned, in the part that aims to cover contingencies attended to by Social Security, with the limit of 4,500 euros per year (art. 30.1 Law).

  • Expenses for services corresponding to operations carried out, directly or indirectly, with persons or entities resident in countries or territories regulated by regulations due to their nature as tax havens, or that are paid through persons or entities resident therein, unless proven that the expense responds to an operation or transaction actually carried out.

  • The amounts that, due to the application of floor clauses, would have been paid by the taxpayer in 2018 and with respect to which, before the end of the filing period for the declaration, an agreement is reached to return them to the financial institution or in compliance with court rulings or arbitration awards, they will not be considered a deductible expense.

  • Personnel expenses that correspond to compensation derived from the termination of the employment relationship, common or special, or the commercial relationship, of administrators or members of the Boards of Directors, of the Boards that act in their place and other members of other bodies representative, produced since January 1, 2013, when they exceed, for each recipient, the highest of the following amounts.

    1. 1,000,000 euros.

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