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V1189-14 29 April 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Amortisation of intangibles acquired via non-monetary contribution involving indirect disposal is deductible

An insurance company queried whether it could deduct the amortisation of intangible assets (goodwill and a distribution contract) received through a non-monetary contribution that forms part of a transaction involving a transfer of control to a third party. The Directorate General for Taxes (DGT) ruled that the transaction is considered a transfer for consideration between entities that do not belong to the same group.

The question raised

Question posed In relation to the tax deduction of the depreciation of intangible assets acquired in the non-monetary contribution of May 31, 2013:

The DGT's ruling

The non-monetary contribution is considered a transfer for consideration. If the transaction is part of an agreement involving the transfer of control to a third party, the acquiring entity and the contributing entity are not considered part of a group according to the Commercial Code. Therefore, the amortization of intangible fixed assets with a defined useful life (limit of one tenth) and of goodwill (limit of one twentieth, or one hundredth depending on the period) is deductible, provided that the requirements for the allocation of unavailable reserves for the latter are met.

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