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V1601-20 ·26 May 2020 ·consulta-vinculante Medium impact
Tax

Property tax expenses in a lease are not considered financial expenses subject to Article 16 LIS if not recorded under PGC item 13

A hospitality company inquired whether property taxes assumed under a financial lease agreement should be included in the limit for the deductibility of financial expenses. The DGT ruled that if these are not recorded in the financial expense accounts for accounting purposes, they are not included in the calculation of net financial expenses.

In 6 key points

How it affects those involved

This ruling provides clarity on the accounting treatment of property taxes within leasing contracts, potentially reducing the net financial expense figure used to calculate the deductibility limit under Article 16 of the Corporate Income Tax Act (LIS).

Lifecycle

2020-05-26PublishedPublished 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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