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V2829-20 21 September 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · ajuste fiscal

Tax treatment of acquired rights must follow the accounting treatment of the transaction

A company inquired whether it could make a tax adjustment in 2018 to reflect the real value of rights purchased in 2008 following an out-of-court settlement. The DGT ruled that the tax treatment must align with the accounting treatment, as reported by the ICAC.

The question raised

It is asked whether the tax adjustment of the aforementioned rights, purchased in full in 2008, can be made in 2018 in such a way that their real value is reflected precisely by the same amount received in the 2018 agreement.

The DGT's ruling

The tax treatment of the transaction must be the same as the accounting treatment, in accordance with Article 10 of the LIS. According to the ICAC report, upon resolution of the litigation, the rights are derecognized and the difference between their book value and the valuation of the assets received (real estate, cash, and promissory notes) shall be recorded in the profit and loss account as an exceptional income. The promissory notes shall be recognized at their fair value and the real estate at its cost or acquisition price.

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