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V2116-17 10 August 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · cláusula suelo

Refunds of floor clause amounts are not subject to Income Tax (IRPF) taxable base

A query was raised regarding the tax treatment of interest refunds resulting from floor clauses, whether arising from agreements or court rulings. The Directorate General for Taxes (DGT) has ruled that these amounts and their compensatory interest are not included in the taxable base.

The question raised

Tax consequences in Personal Income Tax regarding judicial rulings and agreements concluded between financial institutions and their clients through which amounts collected under interest rate limitation clauses (floor clauses) are refunded.

The DGT's ruling

The refund of amounts due to floor clauses and their compensatory interest is not included in the personal income tax (IRPF) taxable base. If the refunded amounts were used for deductions in non-prescribed tax years, the unduly deducted amounts must be added to the state and regional net tax liability of the tax year in which the agreement was reached. No adjustment is required if the financial institution applies the amounts directly to reduce the principal of the loan.

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