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V2418-17 27 September 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pérdida patrimonial

Payment of debt through derivative liability constitutes a capital loss for Personal Income Tax purposes

A taxpayer asks whether paying a tax debt after being declared subsidiarily liable constitutes a capital loss and when it should be declared. The Directorate General for Taxes (DGT) responds that the payment does generate such a loss and must be reported in the period in which it is made.

The question raised

Possibility of attributing a capital loss in the taxpayer's Personal Income Tax return and, where applicable, the tax period of attribution.

The DGT's ruling

The payment of the debt by the subsidiary liable party results in a capital loss within the terms of the Personal Income Tax Act. This loss must be attributed to the tax period in which the payment occurs, provided that the agreement on the derivation of liability is final. The loss is integrated into the general taxable base and does not include interest for installment payments, which are considered consumption income.

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