Skip to content
V4444-16 ·17 October 2016 ·consulta-vinculante Medium impact
Tax

Modifying novations involving debt reduction are considered debt forgiveness for offsetting negative tax bases

A company has enquired whether income arising from a modifying novation of debt can be classified as debt forgiveness to avoid the limitation on offsetting negative tax bases. The DGT has ruled that any reduction in debt is economically a debt forgiveness and, therefore, is excluded from said limitation.

In 6 key points

How it affects those involved

This ruling provides legal certainty for companies restructuring debt, allowing them to treat debt reductions as debt forgiveness to bypass the restrictions on offsetting tax losses.

Lifecycle

2016-10-17PublishedPublished 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