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V3044-14 5 November 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aumento de capital

Capital increase via debt-for-equity swap valued at market price without generating income

A company sought guidance on the tax valuation of a capital increase carried out through the offsetting of credits. The DGT ruled that the market value of the transaction must be applied.

The question raised

1. How must the capital increase operation through the offsetting of credits be valued from a tax perspective?

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, the company shall not include income in its tax base for this operation, even if an income is recognized for accounting purposes.

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