Back to index
V1837-18 22 June 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión

Income of the absorbed entity from the accounting retroactivity forms part of the tax base of the absorbing entity

A credit cooperative absorbed another with accounting effects from November 1, 2015. The inquiry asks whether the income of the absorbed entity during that period must be included in the tax base of the absorbing entity for the 2015 fiscal year.

The question raised

Question posed 1. Whether the income corresponding to the period between November 1 and December 31, 2015, must be included by the applicant for the purpose of determining its Corporate Income Tax base for the 2015 tax period.

The DGT's ruling

If the merger meets the requirements of the special regime, the accounting retroactivity has full tax effects. Therefore, the operations of the absorbed entity recorded from the retroactivity date form part of the tax base of the absorbing entity in the 2015 period. The absorbing entity may apply the pending deductions of the absorbed entity and offset its negative quotas under the requirements of Article 84 of the LIS and DT 16th.

Email
Contact