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V3030-16 29 June 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto

Unpaid invoices may be deducted as impairment losses if insolvency requirements are met

A professional under the simplified direct estimation regime asks whether an uncollected amount from a client can be deducted as an expense. The DGT rules that it is possible to deduct the impairment loss on the credit if the insolvency circumstances provided for by law are present.

The question raised

Whether it is possible to deduct the uncollected amount as an expense of the economic activity.

The DGT's ruling

To determine the net income from economic activities, the Corporate Tax rules shall apply. Therefore, losses due to impairment of credits for insolvency shall be deductible when six months have elapsed since the maturity date, the debtor is in insolvency proceedings, is prosecuted for asset stripping, or the obligations are judicially claimed. Global risk estimates and related-party debtors shall not be deductible, except in specific cases of insolvency proceedings.

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