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V3542-15 17 November 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · gravamen especial

19% special tax on SOCIMI waived if 10% minimum tax is met after considering loan and residency tax deductions

The DGT confirms that for calculating the 10% minimum tax on a SOCIMI, interest expenses from shareholder loans are taken into account, except in participative loans where shareholder income is taxed without deductions.

The question raised

Question posed: Whether, for the purposes of calculating the 10% minimum tax at the LuxCo level referred to in Article 9.2 of Law 11/2009, the deductible financing expense derived from the shareholder loan must be taken into consideration, given that the deductible expense included by LuxCo in its corporate income tax base will simultaneously generate taxable income of an identical amount in the corporate income tax of its shareholders.

The DGT's ruling

To determine whether the taxation of the dividend is below 10%, the effective taxation of the dividend must be considered in isolation, including associated expenses such as financing costs for its acquisition. However, if the financing expenses derive from participating loans from shareholders that generate taxable financial income for them (without deductions or exemptions), such expenses shall not be taken into account to determine the effective taxation of the dividends.

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