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V4900-16 ·11 November 2016 ·consulta-vinculante Medium impact
Tax

Propane gas consumption expenses are deductible if accounting and substantiation requirements are met

A company has enquired whether propane gas consumption included in its own invoice is deductible for Corporate Tax purposes. The DGT has ruled that it shall be deductible provided that the requirements for accounting entry, accrual, correlation with income, and documentary substantiation are satisfied.

In 6 key points

How it affects those involved

This ruling clarifies the conditions under which energy costs, specifically propane gas, can be treated as deductible expenses for Corporate Tax, emphasizing the necessity of strict adherence to accounting and evidentiary standards.

Lifecycle

2016-11-11PublishedPublished 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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