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V0040-15 12 January 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deterioro de valor

Loss of interest value in linked entities does not count in financial expenses limit

The DGT confirms that interest loss arising but not collected, being non-deductible due to the entity being linked, should not be included in the calculation of financial expenses under Article 20 of the TRLIS.

The question raised

Question posed: Whether the impairment loss on the credit right corresponding to accrued and unpaid interest must be considered a financial expense for the purposes of Article 20 of the TRLIS, despite the fact that said impairment is not deductible because it concerns a related party, in accordance with the provisions of Article 12.2 of the TRLIS.

The DGT's ruling

Article 12.2 of the TRLIS establishes the non-deductibility of impairment losses on receivables from related parties, except in cases of judicially declared insolvency. This non-deductibility includes the portion of accrued and unpaid interest. Therefore, financial expenses that generate an impairment loss that is non-deductible for this reason must not be included for the application of the financial expense limitation under Article 20 of the TRLIS.

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