Skip to content
V3538-20 ·11 December 2020 ·consulta-vinculante Medium impact
Tax

Obligation to withhold on PIK interest arises at the time of exigibility or payment in kind

A private equity firm has requested clarification on when an issuer of convertible bonds must apply withholding tax or payment on account regarding PIK-cash and PIK-convertible interest. The DGT has ruled that the obligation arises when the interest becomes due or is satisfied in kind.

In 6 key points

Lifecycle

2020-12-11PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact