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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

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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