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V1775-23 ·20 June 2023 ·consulta-vinculante Medium impact
Tax

Loss from paying a third party's debt is deductible if recognised accounting-wise as a definitive loss

Entity Y paid a debt owed by Entity X to discharge a mortgage guarantee. The Tax Agency has ruled that if it is determined accounting-wise that a credit cannot be recognised and it is recorded as a definitive loss, such expense is tax-deductible.

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2023-06-20PublishedPublished 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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