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V3287-15 ·26 October 2015 ·consulta-vinculante Medium impact
Tax

Suspension of a company's listing does not automatically trigger a capital loss for Personal Income Tax purposes

A query was raised regarding whether the suspension of a company's stock market listing allows for the recognition of a capital loss for Personal Income Tax (IRPF) purposes. The Directorate General for Taxes (DGT) ruled that for such a loss to arise from dissolution, the liquidation of the company must first take place.

In 6 key points

How it affects those involved

This ruling clarifies that the mere inability to trade shares due to a suspension of listing is insufficient to claim a capital loss; formal liquidation procedures are required to realise the loss for tax purposes.

Lifecycle

2015-10-26PublishedPublished 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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