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V2321-15 23 July 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pérdida patrimonial

A credit against a company in bankruptcy is not automatically a taxable loss

The consultant asks whether a credit maintained against a company in bankruptcy can be considered a taxable loss. The DGT responds that the credit is not automatically a loss and will only be recognised when it is judicially uncollectible or when the temporary imputation rules of the Income Tax Law are met.

The question raised

Question posed: Possible consideration as a capital loss of the amount owed.

The DGT's ruling

The existence of a credit right against an insolvent company does not automatically constitute a capital loss. This will occur when the credit becomes judicially uncollectible or when the circumstances of letter k) of Article 14.2 of the Personal Income Tax Law concur, such as the effectiveness of a debt haircut in an agreement or the conclusion of the insolvency proceedings without satisfaction of the credit. As it does not derive from a transfer of assets, it is integrated as general income in the tax base.

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