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Non-Deductible Expenses: DGT doctrinal evolution

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

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How the DGT's position has evolved

Stable position High confidence 14 rulings · 2014–2025

Current position

Penalties and surcharges (executive period or for late filing) are not tax-deductible. Tax late-payment interest is considered deductible financial expense, subject to the operating profit limit. Social Security contributions are imputed on an accrual basis. Expenses for vehicles owned by partners require documentary justification and direct business use for their deductibility.

The DGT's position remains constant in the distinction between the nature of the concepts: penalties and surcharges are non-deductible, while late-payment interest is treated as a financial expense. No changes in criterion are observed in the sequence, but rather a repeated application of the regulations on the deductibility of expenses according to their financial or punitive nature.

Analysis based on 13 of 14 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

14
V0258-25 5 Mar 2025

Vehicle expenses not deductible if registration and allocation requirements not met

SG de Impuestos sobre las Personas Jurídicas
estimación directadevengocorrelación de ingresos y gastosgastos no deduciblesafectación a la actividad LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11.3
Affects CompanyExpat · Non-residentIndividual
V2068-16 13 May 2016

Tax late-payment interest is deductible as a financial expense in Corporation Tax

SG de Impuestos sobre las Personas Jurídicas
intereses de demoragastos financierosdeducibilidadcarácter compensatorioresultado contable LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11.3
Affects CompanyExpat · Non-residentIndividual

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