Back to index
V1193-14 29 April 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deterioro de participaciones

2012 tax return must be amended to include deduction for impairment of shareholdings

A company inquired whether it could apply the deduction for impairment of shareholdings in its 2013 tax return following the repeal of the relevant regulation, or if it was required to amend its 2012 return. The Directorate General of Taxes (DGT) ruled that since the deduction is extra-accounting in nature, it must be attributed to the financial year in which the impairment occurs. Consequently, it cannot be applied in 2013 and the 2012 return must be amended.

The question raised

Whether the 2012 Corporate Income Tax return can be rectified in order to include the tax deduction for impairment of holdings calculated in accordance with the then-current Article 12.3 of the TRLIS or, failing that, whether said deduction can be applied in the 2013 return, despite the repeal of said article.

The DGT's ruling

The deduction for impairment of holdings in group, multi-group, and associated entities is extra-accounting in nature pursuant to Article 10.3 of the TRLIS. Therefore, the temporal imputation criteria of Articles 19.1 and 19.3 of the TRLIS do not apply; instead, the expense must be imputed to the period in which the reduction in the equity of the investee entity occurs. Consequently, it is not possible to include this expense in a subsequent fiscal year, and the rectification of the self-assessment for the corresponding fiscal year must be requested.

Book your free first meeting