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V1488-22 21 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · condonación de préstamo

Forgiveness of a loan between two companies does not affect the income tax of common shareholders, except in certain cases

Shareholders have enquired whether the forgiveness of a loan between two companies in which they hold interests affects their personal income tax (IRPF). The Directorate General for Taxes (DGT) has ruled that, as a general rule, shareholders are external to the loan and the transaction does not affect them.

The question raised

Effects on the Personal Income Tax of the applicants regarding the forgiveness of the loan.

The DGT's ruling

The forgiveness of a loan between two companies does not have effects on the Personal Income Tax of the individual shareholders, as they are external to the loan. Rule 18 of the registration and valuation standards of the General Accounting Plan, which would imply a higher acquisition value and dividend income, does not apply. However, this does not apply if the forgiveness is part of a complex operation or an instrument for the transfer of assets between shareholders.

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