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A non-recourse factoring company has requested clarification on the tax regime applicable if it ceases to be a credit financial institution. The DGT has ruled that it would transition to the general Corporate Income Tax rate and its financial expenses would be subject to the limitations set out in Article 16 of the LIS.
Entities losing their status as credit financial institutions will face a higher tax burden due to the application of the general corporate tax rate and stricter controls on the deductibility of financial expenses.
The tax team reviews your specific situation.
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