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V3934-15 ·9 December 2015 ·consulta-vinculante Medium impact
Tax

Propane gas consumption is deductible for Corporation Tax if legal requirements are met

A company managing a solar thermal power plant has enquired whether propane gas consumption expenses are deductible even if they are offset against its own supply invoice. The Directorate General for Taxes (DGT) has ruled that the expense is deductible provided it complies with accounting regulations, accrual principles, the correlation principle between income and expenses, and documentary justification.

In 6 key points

How it affects those involved

Companies using propane gas for operational purposes can deduct these costs from their Corporation Tax liability, provided they maintain strict adherence to accounting standards and documentation requirements.

Lifecycle

2015-12-09PublishedPublished 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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