Back to index
V1580-14 17 June 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · grupo fiscal

Pending double taxation relief may be applied against the tax group's total tax liability

A parent company has queried whether it can apply internal double taxation relief generated in 2009 to its 2013 consolidated tax return, having been unable to use it previously due to insufficient tax liability. The Directorate General for Taxes (DGT) has ruled that this is permissible, provided certain limits are respected.

The question raised

Whether, in accordance with the provisions of Article 78.2 of the Recast Text of the Corporate Income Tax Law approved by Royal Legislative Decree 4/2004, of March 5, the Company may apply in the consolidated return of the Group corresponding to the 2013 fiscal year the pending deductions for domestic double taxation generated in the 2009 fiscal year.

The DGT's ruling

Deductions of any company that are pending application at the time of its inclusion in the tax group may be deducted from the tax group's gross tax liability. This application is subject to a double limit: the gross tax liability of the entity that generated the deduction under the individual regime and the gross tax liability of the tax group itself.

Book your free first meeting