Back to index
V3001-23 16 November 2023 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · provisión

Companies with an employment relationship must record the severance provision and bear its temporary non-deductibility

A query is made regarding which entities must bear the temporary non-deductibility of expenses for premiums of a severance plan. The DGT responds that it must be the companies that maintain the contractual relationship with the workers, who must record the accounting provision and assume the tax limitation.

The question raised

Question posed: Which entities are those that must bear the temporary non-deductibility of the expense for the premiums paid to the insurance company Z? That is, whether it must be the ABC companies that bear the aforementioned temporary non-deductibility, or if, on the contrary, it must be entity X and other entities of group X dependent on the tax consolidation group that bear said temporary non-deductibility in the portion corresponding to each of them.

The DGT's ruling

Group companies that maintain the contractual relationship with the workers must account for the provision for indemnities in the fiscal year in which the implicit obligation arises. These entities cannot transfer the expense to the ABC companies, which act only as intermediaries. The allocation shall not be deductible in the fiscal year of its recording, but rather when the benefits become due, subject to the limits of Article 15.i) of the LIS.

Email
Contact