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V2391-24 ·25 November 2024 ·consulta-vinculante Medium impact
Tax

Forgiveness of lease debt is not a deductible expense and must be valued at market value

A company sought clarification on the tax implications of forgiving a tenant's debt in exchange for the transfer of a commercial premises. The DGT ruled that such debt forgiveness constitutes a non-deductible gratuity, and the difference between its market value and its tax value must be included in the taxable base.

In 6 key points

How it affects those involved

Companies performing debt forgiveness in exchange for assets must account for the difference between the debt's value and the asset's market value, as this cannot be treated as a deductible expense.

Lifecycle

2024-11-25PublishedPublished 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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