Skip to content
Back to index
V0320-24 5 March 2024 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · doble imposición económica

Deduction for prior-year dividends cannot be applied in 2017 if not declared at the time

A company inquired whether it could apply the double taxation deduction under the 23rd Transitional Provision of the Corporate Income Tax Act in 2017 for dividends received between 2012 and 2015. The Directorate General of Taxes (DGT) ruled that the right to the deduction arises when the dividends are received, and therefore, deductions corresponding to fiscal years in which they were not declared cannot be applied in 2017.

The question raised

1. Confirmation that the distribution of dividends by entity Y, up to the amount of the capital gain obtained by entities A1 and A6 and integrated into their respective Corporate Income Tax taxable bases (excluding the portion for which they applied the deduction to avoid internal double taxation on capital gains), enables entities G and F (that is, the tax consolidation group of which both are members) to apply the double taxation deduction established by the twenty-third transitional provision of the LIS.

Book your free first meeting