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V3158-15 ·20 October 2015 ·consulta-vinculante Medium impact
Tax

Swap termination costs are not subject to the financial expense limitation under Article 20 TRLIS

A company in insolvency proceedings has enquired whether the impact of the early termination of a hedging swap should be included in the limit for the deductibility of financial expenses. The DGT has ruled that this does not constitute an expense derived from corporate indebtedness, but rather an extraordinary expense resulting from the cancellation of the instrument.

In 6 key points

How it affects those involved

This ruling clarifies that costs arising from the early termination of derivative instruments are treated as extraordinary expenses rather than financial expenses, preventing them from being restricted by the interest limitation rules.

Lifecycle

2015-10-20PublishedPublished 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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