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V0359-16 29 January 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · consolidación fiscal

Loss on the transfer of a company within a tax group must be reduced by negative tax bases already offset within the group

A query was raised regarding whether the loss arising from the transfer of a shareholding in a company leaving a tax group is deductible. The DGT ruled that the negative income must be reduced by the negative tax bases of the transferred entity that have already been offset within the group.

The question raised

Whether the loss resulting from the transfer of the shareholding is tax-deductible in the Corporate Income Tax return.

The DGT's ruling

Pursuant to Article 71.4 of the TRLIS, the negative income arising from the transfer of a shareholding in a company leaving the tax group shall be reduced by the negative tax bases generated by the transferred entity that have been offset within the group. If the negative income corresponds to unoffset negative tax bases that the entity assumes upon leaving the group, such income shall be included in the tax base. The objective is to prevent the double application of negative income.

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