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V2070-14 30 July 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · provisiones técnicas

Accounting provisions are not deductible for entities without insurance company status

An insurance intermediary has inquired whether its accounting provision can be treated as a deductible technical provision. The DGT has ruled that, as the entity is not an insurance company, it cannot benefit from the tax deductibility applicable to such provisions.

The question raised

Whether the described accounting allocation could be classified and/or assimilated to some of the technical provisions established in Article 29 of Royal Decree 2486/1998 and Article 16 of Royal Legislative Decree 6/2004, which develop the Regulations and the Law on the Regulation and Supervision of Private Insurance respectively.

The DGT's ruling

Article 13.4 of the TRLIS allows the deductibility of expenses for technical provisions only to insurance entities, within the limits established by the applicable regulations. As the taxpayer does not hold the status of an insurance entity, its accounting allocation is not a deductible expense.

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