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V2517-24 10 December 2024 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · consolidación fiscal

Operating profit for the financial expense limit in tax consolidation must account for intra-group eliminations and adjustments

A company enquired whether, when integrating a subgroup into a larger tax group, the operating profit used to apply the financial expense limit must include eliminations and adjustments arising from transactions with both the subgroup entities and the new tax group entities. The DGT ruled that such transactions must indeed be taken into account to determine the operating profit.

The question raised

Confirmation that for the purposes of calculating the operating profit of the entities forming the subgroup headed by entity C, and in accordance with Article 74.3.b) of the LIS, the eliminations and additions resulting from transactions carried out (i) between the entities of the subgroup that generated the net financial expenses must be taken into account

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