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V3727-15 25 November 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · beneficio operativo

Results from discontinued operations must be included in operating profit calculations for financial expense limitations

A query was raised regarding whether the result of a discontinued activity, even if presented as a separate line item in the profit and loss account, should be included in the calculation of operating profit under Article 20 of the TRLIS (or Article 16 of the LIS). The DGT has ruled that it must be taken into account to determine said profit.

The question raised

Whether the operating result arising from a discontinued activity, despite being presented on a separate line from the operating result derived from the rest of the activities in the standard presentation of the annual accounts, must be taken into account for the calculation of the operating result provided for in Article 20 of the consolidated text of the Corporate Income Tax Law.

The DGT's ruling

The operating result corresponding to discontinued operations must be included to determine the operating profit, applying the same adjustments as for the general operating result. This implies eliminating the depreciation of fixed assets, the allocation of non-financial fixed asset grants and others, impairment, and the result from the disposal of fixed assets, in addition to adding financial income from holdings in equity instruments according to legal requirements. This criterion is applicable to both the TRLIS and the LIS, and in the case of tax consolidation, the limit shall refer to the tax group.

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