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An electric power producer has requested clarification on whether payments derived from financial contracts (financial PPAs) used to hedge price volatility should be included in the IVPEE taxable base. The Directorate General for Taxes (DGT) has ruled that only the prevailing market price at the time of delivery should be included.
This ruling provides legal certainty for energy producers using financial derivatives, confirming that hedging premiums or adjustments do not increase the tax burden of the Special Tax on the Production of Electricity (IVPEE).
The tax team reviews your specific situation.
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