Back to index
V3153-15 19 October 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · consolidación fiscal

Deductible deterioration reversal must be removed from consolidated tax base

The consultant asks whether the reversal of a shareholding impairment, deductible individually but eliminated in consolidation, must also be removed from the group's tax base. The DGT responds that since the impairment was not a deductible expense at the group level, its reversal must also be eliminated.

The question raised

Question posed: Whether, within the framework of the tax consolidation group, the amount corresponding to the reversal of the impairment of holdings carried out in the individual tax base (an impairment that was once tax-deductible but was subject to elimination at the consolidated tax base level) must be subject to elimination from the group tax base, in accordance with both the Recast Text of the Corporate Income Tax Law and the Corporate Income Tax Law.

The DGT's ruling

If the impairment loss was subject to elimination in the determination of the consolidated tax base of the tax group, it did not have the status of a tax-deductible expense at the group level. Therefore, the reversal of said impairment in the individual tax base must likewise be subject to elimination in the consolidated tax base.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Book a meeting Write to the firm
Email
Contact