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V1664-15 ·28 May 2015 ·consulta-vinculante Medium impact
Tax

Application and mechanics of financial expense deductibility limits (arts. 15.h and 16 LIS) and transitional regime for participative loans and pre-June 2014 acquisition operations

A private equity association seeks to coordinate the non-deductibility under article 15.h) LIS (group financing expenses for acquiring group shares) with the general 30% operating profit limit under article 16 LIS and the additional debt acquisition limit under article 16.5 LIS. The DGT establishes the order: first exclude non-deductible expenses under article 15.h); then apply successively the additional limit under article 16.5 and the general limit under article 16.1. It details the mechanics of reducing acquisition debt from 70% to 30% over eight annual instalments and outlines transitional provisions preserving the deductibility of participative loans and pre-June 2014 restructuring operations.

In 7 key points

How it affects those involved

Clarifies the deductibility rules for group financing expenses and acquisition debt, ensuring compliance with the 30% operating profit cap and introducing a phased reduction of acquisition debt, while maintaining transitional deductibility for pre-2014 transactions.

Lifecycle

2015-05-28PublishedPublished 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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