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V3961-15 14 December 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · bases imponibles negativas

Outstanding tax loss carryforwards as of 2015 can be offset without time limits

An agricultural transformation company sought clarification regarding the timeframe for offsetting tax loss carryforwards generated since 1997. The Directorate General for Taxes (DGT) ruled that, following the 2015 reform, these losses can be offset without any time limit.

The question raised

Period for offsetting negative tax bases.

The DGT's ruling

As from the tax periods beginning on January 1, 2015, negative tax bases may be offset against positive income without any time limit. This indefinite application extends to negative bases pending offset at the beginning of said year, pursuant to the twenty-first transitional provision of the LIS. Therefore, bases generated in 1997 may be offset in subsequent periods without a time limit, respecting the applicable quantitative limits.

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