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V1309-19 ·6 June 2019 ·consulta-vinculante Medium impact
Tax

Impairment losses on receivables are deductible when the debtor is in insolvency proceedings

A professional operating under the direct estimation tax regime asks whether they can deduct losses resulting from the non-payment of a client declared in insolvency. The Directorate General for Taxes (DGT) responds that such losses are deductible by applying Corporate Tax rules.

In 6 key points

How it affects those involved

This ruling clarifies that professionals under the direct estimation regime can apply corporate tax principles to deduct bad debts caused by a debtor's insolvency.

Lifecycle

2019-06-06PublishedPublished 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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