Doctrine by topic · DGT Observatory

Deductibility Limit: 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

Refined position High confidence 10 rulings · 2014–2023

Current position

Financial expenses from debt intended to acquire entities that join a tax group are subject to an additional limit of 30% of the acquirer's operating profit, excluding the profit of the acquired entity. This special limit applies prior to the general limit of 30% of the group's operating profit or the one million euro threshold. Tax late-payment interest is considered a deductible financial expense due to its compensatory rather than punitive nature.

The DGT's position remains stable regarding the classification of late-payment interest as deductible financial expenses. However, the doctrine has incorporated clarifications on the application of specific limits for debts related to the acquisition of entities within tax groups, establishing an order of application for these limits.

Turning points

  1. V2969-23

    Introduces the application of an additional limit of 30% of the acquirer's operating profit for debts related to the acquisition of entities joining a tax group, applicable before the general limit.

Analysis based on 10 of 10 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

10
V1664-15 28 May 2015

Application and mechanics of financial expense deductibility limits (arts. 15.h and 16 LIS) and transitional regime for participative loans and pre-June 2014 acquisition operations

SG de Impuestos sobre las Personas Jurídicas
gastos financierosdeducibilidadbeneficio operativoadquisición de participacioneslímite de deducibilidad LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 15.hLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 16.1
Affects CompanyExpat · Non-residentIndividual
V0040-15 12 Jan 2015

Loss of interest value in linked entities does not count in financial expenses limit

SG de Impuestos sobre las Personas Jurídicas
deterioro de valorderechos de créditogastos financierosentidades vinculadaslímite de deducibilidad TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 12.2TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 14.1.h
Affects CompanyExpat · Non-residentIndividual
V0777-14 20 Mar 2014

Implicit interest and subsidies on 0% loans count towards the financial expense limit

SG de Impuestos sobre las Personas Jurídicas
gastos financieros netosintereses implícitosendeudamiento empresarialcesión de capitales propiosbeneficio operativo 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

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