V1865-15 ·15 June 2015 ·consulta-vinculante Medium impact
Tax

Financial expenses from debt write-offs or deferrals are subject to the 30% operating profit limit

A company sought clarification on whether financial expenses arising from debt subject to write-offs and deferrals in a 2009 insolvency proceeding were subject to Corporate Tax regulations. The DGT clarified that while the temporal imputation criteria for income from write-offs do not apply to agreements from that date, financial expenses are indeed subject to the general limitation based on operating profit.

In 6 key points

How it affects those involved

This ruling confirms that companies cannot bypass the interest limitation rule by categorising expenses related to debt restructuring (write-offs and deferrals) as exempt, as they remain subject to the 30% operating profit cap.

Lifecycle

2015-06-15PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.
PDF on boe.es

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact