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V2519-24 ·10 December 2024 ·consulta-vinculante Medium impact
Tax

Extinction of Moroccan subsidiary: intercompany credit impairment and negative tax income on dissolution

Two Spanish partners (A with 22.5% and B with 45%) of a dissolved Moroccan subsidiary seek clarification on the deductibility of intercompany credit impairments and the tax treatment upon dissolution. The DGT distinguishes: A can deduct impairments if any circumstance under Article 13.1 LIS applies; B, being a linked entity (≥25%), only deducts if the company is in liquidation proceedings. Both must include in their taxable base the difference between the market value received and the tax value of the cancelled shareholding (Article 17.8 LIS), with negative taxable income deductible after reduction by dividends received over the previous ten years (Article 21.8 LIS).

In 7 key points

How it affects those involved

The ruling clarifies deductibility rules for intercompany credit impairments and tax treatment upon dissolution of a non-resident subsidiary, affecting Spanish partners with significant shareholdings and requiring integration of market versus fiscal value differences in taxable income.

Lifecycle

2024-12-10PublishedPublished 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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