Skip to content
Back to index
V1309-19 6 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto

Impairment losses on receivables are deductible when the debtor is in insolvency proceedings

A professional operating under the direct estimation tax regime asks whether they can deduct losses resulting from the non-payment of a client declared in insolvency. The Directorate General for Taxes (DGT) responds that such losses are deductible by applying Corporate Tax rules.

The question raised

Whether the impairment loss on receivables arising from potential insolvencies is deductible.

The DGT's ruling

To determine the net income from economic activities for Personal Income Tax purposes, the Corporate Tax rules shall apply. In the case of a debtor in insolvency proceedings, the impairment loss on receivables is deductible. The temporal allocation of said expense must comply with the provisions of Article 11 of the Corporate Tax Law.

Book your free first meeting