Doctrine by topic · DGT Observatory

Net Financial Expenses: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

← DGT Observatory

How the DGT's position has evolved

Refined position High confidence 27 rulings · 2014–2026

Current position

For the limit under Article 16 of the LIS (Corporate Income Tax Law), income and expenses from financial hedges linked to indebtedness are included. However, derivatives that cover price risks to stabilize procurement costs (such as in PPA contracts) are not considered financial expenses or income for this limit. Likewise, expenses from the early termination of hedges unrelated to the covered item are not included in net financial expenses.

The DGT's position remains stable regarding the definition of net financial expenses, but it has clarified the nature of the elements that comprise it. It has been clarified that derivatives intended to stabilize procurement costs rather than cover debt do not count toward the limit. It has also been delimited that the loss of hedge status or the early termination of unrelated instruments does not affect the calculation.

Turning points

  1. V3158-15

    Establishes that expenses from the early termination of a hedging instrument unrelated to the covered item are not business indebtedness expenses.

  2. V0864-26

    Specifies that derivatives covering price risks to stabilize procurement costs are not considered financial expenses or income for the Article 16 LIS limit.

Analysis based on 26 of 27 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
V0864-26 21 Apr 2026

PPA price risk cover not subject to LIS Article 16 limits

SG de Impuestos sobre las Personas Jurídicas
cobertura contablegastos financieros netosendeudamiento empresarialcontratos ppariesgo de precio LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 16
Affects CompanyExpat · Non-residentIndividual
V0289-25 17 Mar 2025

Acquirer may assume net financial expenses upon divestment of a business unit

SG de Impuestos sobre las Personas Jurídicas
consolidación fiscalgastos financieros netosrama de actividadsubrogación tributariasucesión a título universal LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 16LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 74.1.b) 1º
Affects CompanyExpat · Non-residentIndividual
V2133-19 13 Aug 2019

Losses from the sale of a credit are tax-deductible for Corporation Tax purposes

SG de Impuestos sobre las Personas Jurídicas
estimación directatransmisión de créditogasto contablededucibilidadgastos financieros netos LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 16
Affects CompanyExpat · Non-residentIndividual
V2155-15 14 Jul 2015

Lease income reduces the tax group's net financial expenses

SG de Impuestos sobre las Personas Jurídicas
gastos financieros netosbeneficio operativoarrendamiento financieroconsolidación fiscalingresos financieros TRLIS Texto Refundido Ley Impuesto sobre SociedadesLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 16
Affects CompanyExpat · Non-residentIndividual
V0889-15 23 Mar 2015

Retroactive debt interest forgiveness treated as financial income for deductibility limits

SG de Impuestos sobre las Personas Jurídicas
gastos financieros netoscondonación de interesesendeudamiento empresarialconsolidación fiscaldeducibilidad de gastos TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 10.3TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 14.1.h
Affects CompanyExpat · Non-residentIndividual

Apply this to your case

Corporate tax advisoryTalk to the team applying this doctrine daily.
Talk to the tax teamWe check whether this criterion affects you and what it means in your situation.
Email
Contact