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V0143-21 1 February 2021 · SG de Tributación de las Operaciones Financieras Criterion in force
IS · instrumentos de deuda

Subordinated perpetual obligations may qualify for special tax regime

A company inquired whether subordinated perpetual obligations with put options and hybrid features qualify as debt instruments for the special tax regime. The DGT confirms that they do, provided they meet the regulatory requirements.

The question raised

Whether the aforementioned securities can be considered included in those provided for in section 8 of the First Additional Provision of Law 10/2014 and whether, in such case, the tax regime established in section 3 of said additional provision is applicable to them regardless of their accounting treatment.

The DGT's ruling

Debt instruments comprise all types of instruments other than those constituting an equity interest, regardless of their design. The subordinated perpetual bonds consulted are considered debt instruments according to the First Additional Provision of Law 10/2014. To apply the special tax regime, they must meet the requirements of not granting political rights, not granting preemptive subscription rights, and being listed on regulated markets. This treatment is independent of the accounting treatment assigned to them.

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