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V1074-14 14 April 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · compensación de créditos

Debt capitalisation via credit offset does not constitute taxable income

The consultant asks whether the market value is used to capitalise participative loans through credit offset. The DGT responds that such operations are valued at the amount of share capital increase, without incorporating income into taxable base.

The question raised

If, under the application of accounting regulations, both the consultant and entity D were required to reflect income in their accounts due to the capital increase through the offsetting of credits regarding the previously mentioned participating loan, should it be understood that in the tax field the market value at which said capitalization occurs corresponds to the contractual obligation between entities C and the consultant.

The DGT's ruling

Capital increase operations through the offsetting of credits are valued for tax purposes at the amount of the increase from a commercial perspective. The entity receiving the credit and performing the increase for the amount of the existing debt shall not include income in its tax base, regardless of whether an income could exist for accounting purposes.

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