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V2068-16 ·13 May 2016 ·consulta-vinculante Medium impact
Tax

Tax late-payment interest is deductible as a financial expense in Corporation Tax

A company enquired whether late-payment interest arising from tax inspection reports is deductible for Corporation Tax purposes. The DGT ruled that it is deductible as it is of a financial nature rather than a punitive one.

In 6 key points

How it affects those involved

Companies can reduce their Corporation Tax liability by deducting interest paid on late tax payments as financial expenses, provided they are not classified as penalties.

Lifecycle

2016-05-13PublishedPublished 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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