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V0938-14 2 April 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · préstamo participativo

Capitalisation of a participative loan generates no taxable results or consolidation adjustments

The DGT confirms that a participative loan from a parent company to its subsidiary to increase share capital does not generate taxable income and therefore does not require elimination of results in consolidated tax reporting.

The question raised

Whether the contribution of the participating loan by company H to the equity of its subsidiary, company BC, in which it holds a 100% stake, while both parties maintain the same tax value of the credit right and the debt, would not give rise to tax results.

The DGT's ruling

The entity performing a capital increase through the offsetting of credits shall not include income in its tax base, regardless of whether an accounting gain exists. As no tax income or expenses arise from the capitalization, it is not necessary to perform eliminations of results from internal operations to determine the tax base of the group under tax consolidation.

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