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V3965-16 20 September 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · bases imponibles negativas

No entitlement to offset negative tax bases if majority stake is acquired following a holding of less than 25% and other conditions apply

A company sought clarification on whether it could offset negative tax bases from previous financial years following a change in its share capital structure. The Directorate General for Taxes (DGT) ruled that offsetting is not permitted as the limitations regarding the acquisition of the entity have been met.

The question raised

Whether the negative tax bases from previous fiscal years can be offset in accordance with Article 26 of Law 27/2014, of November 27, on Corporate Income Tax and other applicable legislation.

The DGT's ruling

The offsetting of negative tax bases is not permissible when the majority of the capital is acquired by a person or entity that held a stake of less than 25% at the close of the period of the negative base. In this case, the acquisition of the majority of the capital by a third party and the commencement of a new economic activity prevent the offsetting of the bases for the fiscal years 2006, 2007, 2008, 2009, 2013 and 2014.

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