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V0137-22 27 January 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto

Impairment losses on receivables are deductible if the debtor enters insolvency proceedings

A taxpayer under the direct estimation regime asks whether an unpaid invoice from a client in insolvency proceedings can be deducted as an expense. The DGT rules that the Corporate Tax regulations may be applied to deduct such a loss.

The question raised

Whether it is possible to deduct as an economic activity expense the uncollected amount in the determination of the net income of the activity for Personal Income Tax purposes.

The DGT's ruling

To determine the net income from economic activities, the Corporate Tax rules shall apply. The impairment loss on the credit of the unpaid invoice is deductible in the fiscal year in which the client is declared in insolvency proceedings, provided that it does not involve credits owed by public entities, related parties, or global risk estimates.

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