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V0083-23 23 January 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pérdida patrimonial

Payment of tax debts under subsidiary liability constitutes a capital loss for Personal Income Tax (IRPF)

A query was raised regarding whether paying tax debts as a subsidiary liable party of an entity constitutes a capital loss. The Directorate General for Taxes (DGT) has ruled that it does, and it must be recognised in the tax period in which the payment is made.

The question raised

Whether a capital loss may be reflected in the Personal Income Tax return and the temporal imputation thereof.

The DGT's ruling

The payment of the principal debtor's debt by a subsidiary liable party results in a capital loss pursuant to Articles 33 et seq. of the Personal Income Tax Law (LIRPF). This loss must be attributed to the tax period in which the payment occurs, provided that the liability derivation agreement is final. As it does not derive from the transfer of assets, the loss is integrated into the general taxable base.

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