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A taxpayer has enquired about the tax treatment of interest refunds resulting from excess charges under an interest rate cap clause. The Directorate General for Taxes (DGT) has ruled that these amounts, along with any compensatory interest, are not included in the taxable base.
The ruling clarifies that refunds related to floor clauses do not constitute taxable income, preventing double taxation on amounts that are essentially a restitution of overpaid interest.
The tax team reviews your specific situation.
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