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V2578-14 ·1 October 2014 ·consulta-vinculante Medium impact
Tax

Capitalisation of credits generates no taxable income or expense for the debtor entity

The DGT responds that the conversion of debt into equity through exercise of a purchase option constitutes a mere reclassification of debt into shareholders' funds, generating no taxable income or expense.

In 6 key points

How it affects those involved

The capitalisation of credits through the exercise of a purchase option does not result in taxable income or expenses for the debtor entity.

Lifecycle

2014-10-01PublishedPublished 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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