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V2349-16 ·27 May 2016 ·consulta-vinculante Medium impact
Tax

Corporation Tax must be withheld on loan interest when it becomes due or is settled

A company has requested clarification on whether it must withhold Corporation Tax on interest accrued from a shareholder loan prior to settlement. The Directorate-General for Taxes (DGT) has ruled that the obligation to withhold arises when the interest becomes due or at the time the debt is settled.

In 6 key points

How it affects those involved

This ruling clarifies the timing for tax withholding obligations regarding shareholder loans, ensuring companies apply withholding at the point of exigibility or settlement rather than upon accrual.

Lifecycle

2016-05-27PublishedPublished 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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