Article 9bis of the Income Tax Law determined the maximum deducibility limit for non-bank interest, which is 20% of the profit before interest, taxes, depreciation, and amortization (EBITDA).
Likewise, this article established that the Treasury has to regulate the procedure for the taxpayer to apply a different limit for the deductibility of net interest expense via resolution.
Based on the above and through resolution DGT-R-0032-2020, the procedure was clarified, determining that taxpayers must submit the application before the Tax Administration in which they are registered. It also established that the deadline for submitting such application is 15 calendar days after the end of the fiscal period.
(Resolution DGT-R-0031-2020, published at the Digital Scope No. 273 of La Gaceta No.251 of October 15th, 2020)