Back to index
V0991-14 7 April 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · gasto financiero

Minimum dividends on non-voting shares may be deductible if classified as financial expenses

The taxpayer is inquiring whether the 5% minimum dividend on their non-voting shares constitutes a deductible financial expense. The DGT rules that if these are accounted for as financial liabilities, the expense is deductible provided that the requirements for substantiation, recording, and correlation with income are met.

The question raised

1) Whether the minimum dividends corresponding to non-voting shares are considered a financial expense and, in this case, whether they would be tax deductible.

The DGT's ruling

If the remuneration due for non-voting shares is considered an accounting financial expense, it shall be deductible from the taxable base if it is justified, recorded in the accounts, and correlated with income. Deductibility in a period subsequent to the accrual is possible if it does not result in lower taxation, considering the principle of statute of limitations. Furthermore, as a financial expense, its deductibility could be limited by Article 20 of the Corporate Income Tax Law.

Book your free first meeting