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V2574-15 ·4 September 2015 ·consulta-vinculante Medium impact
Tax

Income from debt write-offs in insolvency proceedings is recognised as financial expenses are recorded

A company has requested clarification on how to recognise income derived from a debt write-off approved in a creditors' agreement for Corporate Tax purposes. The DGT has ruled that such income must be recognised in line with the recording of the financial expenses related to that same debt.

In 6 key points

How it affects those involved

This ruling establishes a direct link between the recognition of income from debt forgiveness and the recognition of the corresponding financial expenses, preventing the premature recognition of income in insolvency scenarios.

Lifecycle

2015-09-04PublishedPublished 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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