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V0986-14 7 April 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · gastos financieros netos

Transaction costs and commissions may be subject to the financial expense deductibility limit

The query examines whether opening, notary, registry, and other debt formalisation costs are included in the deductibility limit under Article 20 of the TRLIS. The DGT rules that this depends on their accounting treatment and whether they are incorporated into the asset's value.

The question raised

Of the expenses imputed to account 669 -bank commissions for the opening or formalization of debt, and notary, registry, appraisal, and tax expenses-, which would be excluded or included within the limit of deductibility of financial expenses according to Article 20 of the consolidated text of the Corporate Income Tax Law.

The DGT's ruling

Transaction costs and financial commissions are included in the limit of Article 20 of the TRLIS if they are directly imputed to expenses at the time of the initial recognition of the financial liability. If these costs reduce the initial value of the debt and are valued at amortized cost, the subsequently accrued interest shall be the amount used for calculation. Financial expenses that, according to accounting regulations, must be incorporated into the value of an asset shall not be included in this limit, as their imputation is carried out via amortization under Article 11 of the TRLIS.

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