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V2517-24 ·10 December 2024 ·consulta-vinculante Medium impact
Tax

Operating profit for the financial expense limit in tax consolidation must account for intra-group eliminations and adjustments

A company enquired whether, when integrating a subgroup into a larger tax group, the operating profit used to apply the financial expense limit must include eliminations and adjustments arising from transactions with both the subgroup entities and the new tax group entities. The DGT ruled that such transactions must indeed be taken into account to determine the operating profit.

In 6 key points

How it affects those involved

This ruling clarifies the calculation of operating profit for the limitation of tax-deductible financial expenses within a tax group, ensuring that intra-group transactions are correctly adjusted to reflect the economic reality of the consolidated entity.

Lifecycle

2024-12-10PublishedPublished 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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