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V0337-17 ·7 February 2017 ·consulta-vinculante Medium impact
Tax

No retention of IRNR on debt forgiveness to a US entity under the treaty

A Spanish company proposes forgiving debt (principal and interest) to a US subsidiary. Tax authorities determine the forgiveness constitutes a Spanish source capital gain, but under the US-Spain double taxation treaty, the taxing power lies exclusively with the US. Thus, the Spanish company is not required to withhold.

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2017-02-07PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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