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V0538-20 5 March 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · disolución

Loss on company dissolution is included in the tax base according to market value

A company inquired whether the accounting loss on its shareholdings resulting from the dissolution of a related subsidiary could be treated as a tax loss. The DGT ruled that the difference between the market value of the assets received and the tax value of the shareholding must be included in the tax base.

The question raised

Whether the accounting loss on the value of the shares resulting from the dissolution qualifies as a tax loss.

The DGT's ruling

In the dissolution of entities, the difference between the market value of the assets received and the tax value of the cancelled share shall be included in the tax base, pursuant to Article 17.8 of the LIS. The assets transferred to the partners by reason of dissolution shall be valued at their market value. If there is a relationship between the parties involved, the provisions of Article 18.2 of the LIS shall apply.

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