Skip to content
Back to index
V2977-14 4 November 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · capitalización de deuda

Debt capitalisation via capital increase with assumption premium does not generate tax revenue

The DGT confirms that debt capitalisation through a capital increase including an assumption premium, where the commercial value matches the debt amount, is valued for tax purposes by the commercial increase.

The question raised

Whether in capitalisation operations through the offsetting of credits that incorporate a premium on subscription, not only the issued share capital must be taken into account, but also the premium on subscription established commercially in the deed of increase, and therefore the amount established commercially must coincide with the value of the debts of the consulting entity, and whether there will be no tax effect whatsoever for the consulting entity, regardless of the resulting accounting valuation.

The DGT's ruling

Capital increase operations through the offsetting of credits are valued for tax purposes at the amount of the increase from a commercial perspective, regardless of the accounting valuation. Therefore, if the entity carries out a capital increase with a share premium or equity for the same amount as the existing debt, it will not include income in its tax base, even if an income could exist for accounting purposes.

Book your free first meeting