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V1588-14 20 June 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · patrimonio neto

Shares in companies with negative net equity cannot have a value below zero

A query was raised regarding whether, for Inheritance Tax purposes, the negative net equity of certain companies can be offset against positive values. The DGT ruled that the market value of such shares cannot be negative and must be at least zero.

The question raised

Whether, when performing the settlement of Inheritance and Gift Tax, it is possible to deduct the negative net equity values presented by certain limited companies, as opposed to the positive net equity values held by other companies.

The DGT's ruling

In limited liability companies, the liability of the partners is limited to the capital contributed; therefore, the company's debts cannot be deducted as debts of the deceased. Regarding the real value of the shares, this must be equated to the market value, which cannot be negative. Consequently, shares in companies with negative net equity shall have a minimum value of zero.

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