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V1621-22 ·4 July 2022 ·consulta-vinculante Medium impact
Tax

Impairment losses on receivables cannot be deducted under the cash basis of accounting

A professional has enquired whether they can deduct a capital loss for failing to collect a court costs indemnity. The DGT has ruled that, when applying the cash basis of accounting, impairment losses on receivables cannot be recognised if the income has not yet been received.

In 6 key points

How it affects those involved

This ruling clarifies that taxpayers using the cash basis of accounting cannot recognise credit impairment losses for income that has not yet been realised, preventing the deduction of non-cash losses.

Lifecycle

2022-07-04PublishedPublished 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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