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V1448-20 18 May 2020 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del capital mobiliario

Income from movable capital via bond liquidation is recognised upon completion of the parent company's insolvency proceedings

A taxpayer sought guidance on the tax treatment of losses incurred following the liquidation of bonds guaranteed by a parent company during insolvency proceedings. The DGT ruled that income is determined by the difference between the amounts received and the acquisition value, and its temporal recognition depends on the conclusion of the parent company's proceedings.

The question raised

Treatment in the Personal Income Tax of the negative difference in relation to the amount invested and the temporal allocation thereof.

The DGT's ruling

The return on movable capital is calculated as the difference between the sum of the credits received through the insolvency procedure and the acquisition value of the obligations. If there is a possibility of receiving additional distributions from the parent entity that guaranteed the securities, the quantification and temporal allocation of the return must be carried out in the tax period in which the liquidation procedure of said parent entity concludes. These returns are integrated into the savings tax base for compensation purposes.

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