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V0436-22 ·7 March 2022 ·consulta-vinculante Medium impact
Tax

Write-off of uncollectible debt against a related party is deductible if the debtor is in insolvency proceedings and the liquidation phase begins

A company sought clarification on whether it could deduct the loss of a debt written off in its accounts against a related party. The DGT ruled that while impairment is not deductible if the related party is not in insolvency proceedings, the definitive write-off of the debt is deductible provided that insolvency proceedings are initiated and the liquidation phase is opened.

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2022-03-07PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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