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V0545-18 26 February 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · rama de actividad

Generic debts may be attributed to a business line contribution using reasonable distribution criteria

The query examines whether generic financial debt can be transferred to a new company during a business line contribution and how to calculate it. The Directorate General for Tax Affairs (DGT) rules that attributing generic debts is permissible provided a reasonable distribution criterion is applied, such as the proportion of book values.

The question raised

Whether, in relation to the debts subject to contribution, and more specifically to generic debt, both its calculation formula and the manner of making it effective fall within the definition of contribution of a line of business contained in Article 76.3 of Law 27/2014 on Corporate Income Tax.

The DGT's ruling

Debts incurred for the organization or operation of the transferred elements may be attributed to the acquiring entity. Financial debt directly linked to the transferred assets may be attributed, whereas debt linked to assets not subject to contribution cannot. However, generic financial debt may be attributed to the line of business through a distribution criterion such as the proportion of book values or any other reasonable method. This balance may be subject to contribution for internal purposes through the recording of a reciprocal credit or debit.

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