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V1111-20 28 April 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deterioro de créditos

Impairment of receivables from non-related parties is deductible if 6 months have passed since maturity

A company requested clarification on whether the accounting impairment of receivables recorded in 2016 was tax-deductible. The DGT ruled that, as there is no relationship between the entities and more than 6 months have elapsed since the maturity date, the expense is deductible.

The question raised

1. Whether the accounting impairment recorded in 2016 is fully tax-deductible in the Corporate Income Tax for the 2016 fiscal year.

The DGT's ruling

Impairment losses on receivables are deductible when 6 months have elapsed since the maturity of the obligation. In this case, as the relationship between the companies has ceased and the 6-month period has been met, the impairment recorded in the accounts is tax-deductible in accordance with the LIS.

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