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V1686-14 2 July 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · provisión

Provision for premium collection is not deductible if the new regime eliminates such collection

A company has requested clarification on the amount that must be provisioned for the collection of premiums to ensure deductibility for Corporate Tax purposes. The DGT has ruled that, since the new regime eliminates premiums as of July 2013, it is not appropriate to account for such a provision, and therefore it would not be deductible.

The question raised

1.- For the purposes of Corporate Income Tax, and given that the amount to be provisioned for the collection of premiums is not objectively determined, what amount should be allocated in order to be deductible.

The DGT's ruling

As of the entry into force of Royal Decree-Law 9/2013, the entity shall not collect premiums under the previous regime. Therefore, it is meaningless to recognize a provision for this concept. Said provision shall not be tax-deductible for Corporate Income Tax purposes pursuant to Article 10.3 of the TRLIS.

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