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V1183-24 ·23 May 2024 ·consulta-vinculante Medium impact
Tax

Loan interest expenses are deductible if they meet general requirements and the Article 16 LIS limit

A company has requested a ruling on the deductibility of loan interest expenses used partially to distribute share premium reserves. The DGT has ruled that these expenses are deductible provided they meet the requirements for accounting recognition, accrual, and substantiation, while respecting the financial expense deductibility limit.

In 6 key points

How it affects those involved

Companies must ensure that interest expenses related to share premium distributions comply with both general tax principles and the specific limitations set out in Article 16 of the Corporate Income Tax Act (LIS).

Lifecycle

2024-05-23PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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