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V3054-15 13 October 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · bases imponibles negativas

Negative tax bases may be offset against income from a new activity in accordance with the limits of Article 26 LIS

The inquirer asks whether they may offset negative tax bases against the profits of a new activity and what limits apply. The DGT responds that this is possible provided that the circumstances for limitation due to a change of control do not occur and that the compensation limits established by law are respected.

The question raised

Question posed: Whether, in accordance with the provisions of Article 26 of Law 27/2014, of November 27, on Corporate Income Tax, the entity may offset the generated negative tax bases, which have been subject to assessment or self-assessment, against the positive income generated from the performance of the indicated new activity in subsequent tax periods, and whether any limitation applies to said offset.

The DGT's ruling

The entity may offset its negative tax bases against the positive income from the new activity, provided that the limitation scenarios of Article 26.4 of the LIS (change of control with a different activity or holding company) do not arise. The offset must respect the general limits of the regulation, such as the 1 million euro cap or the percentage of the tax base, in accordance with current rules and applicable transitional provisions.

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