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V2392-24 25 November 2024 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · bases imponibles negativas

Exemption from compensation limit for negative taxable bases in IS

A biotechnology holding company entered into a transactional agreement with a creditor, later judicially approved, under which part of the debt was forgiven. Whether this forgiveness constitutes a 'quita' for the purposes of Article 26 LIS, allowing compensation of negative taxable bases without the 70% cap on taxable income amounts, is examined.

The question raised

Question posed: Whether the commercial forgiveness contained in the judicially approved settlement agreement signed by the taxpayer can be classified as a debt forgiveness for the purposes of the limitation on the compensation of negative tax bases regulated in Article 26 of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

The DGT confirms that the concept of debt forgiveness under Article 26 of the LIS is not limited to those arising from insolvency proceedings, but extends to any total or partial remission of debt agreed upon between creditor and debtor, including those contained in judicially approved settlement agreements. Therefore, the income generated by the extinction of financial liabilities as a consequence of the debt forgiveness falls outside the 70% limit of the previous taxable base (and the minimum threshold of 1 million euros) for the compensation of negative tax bases. The negative tax bases compensated with such income are not counted towards the one million euro threshold.

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