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V2007-15 26 June 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · préstamo participativo

The financial charge of a participating loan may be deductible if it meets accounting requirements and does not constitute remuneration of equity

The taxpayer inquires whether the financial charge and the remuneration of a participating loan are deductible for Corporate Income Tax purposes. The DGT responds that they may be deductible provided that the requirements of accounting registration, accrual, correlation, and substantiation are met, and provided they do not constitute a distribution of equity or exceed financial expense limits.

The question raised

Question raised 1. Whether both the financial charge and any other type of remuneration derived from the application of financial assistance under the participating loan modality to the taxpayer's activity are considered deductible expenses for Corporate Income Tax purposes.

The DGT's ruling

Deductibility depends on the financial charge being an accounting expense and complying with the regulations on accrual, correlation, and documentary substantiation. They shall not be deductible if they are considered a distribution of equity, specifically when the loan is granted by entities within the same group pursuant to Article 42 of the Commercial Code. Furthermore, the limitation on the deductibility of financial expenses under Article 16 of the LIS and the arm's length principle in related-party transactions must be observed.

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