Modification of the calculation for limiting financial expenses

Dec 12, 2023 | Tax Flash

In relation to the calculation of the limitation of financial expenses for the purpose of determining the taxable base of the Corporation Tax, it should be noted that in the BOE of May 25, 2023, Law 13/2023 was published. This law, among other tax changes, modifies the wording of Article 16 of the Corporation Tax Law in its Fifth Final Provision; ‘Limitation on the deductibility of financial expenses’.

The main modification introduced in the wording of Article 16 of the LIS (Corporation Tax Law) refers to the fact that, for the calculation of the operating profitfinancial income from holdings in equity instruments cannot be added, when it corresponds to dividends in which the participation percentage is at least 5% and they have not been integrated into the taxable base of the Corporation Tax, as a consequence of being exempt under the application of Article 21 of the LIS (95% exemption).

This new regulation is applicable for fiscal years starting on or after 1 January 2024.


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