Inability to declare negative returns on blocked Russian bonds

The Directorate General of Taxes (DGT) has issued a relevant ruling for taxpayers holding financial assets affected by international restrictions. The inquiry focuses on the possibility of declaring negative returns on movable capital derived from the situation of Russian bonds, which are currently blocked or facing difficulties in collection.

What the DGT has resolved

The body has determined that the inability to transfer the bonds due to current restrictive measures does not constitute a situation that allows for the obtaining of a negative return on movable capital based on the acquisition value.

In the event that the bonds have reached maturity but have not been collected, the DGT points out two possible scenarios that prevent the deduction:

• That the actual amortization of the asset has not occurred.
• That, due to regulatory prohibitions withholding the funds, the payment has not become due in accordance with the provisions of Article 14.1 of the Personal Income Tax Law (LIRPF).

In both cases, the regulations prevent such a negative return from being calculated in the tax return.

What this means for you

If you are an individual who owns Russian bonds and intend to declare a capital loss or a negative return in your IRPF tax return due to the blocking of these assets, this ruling affects you directly. The Administration considers that, as long as the requirements for maturity or technical amortization are not met, the acquisition value cannot be transformed into a tax loss, regardless of the actual difficulty in accessing the funds or the impossibility of selling the securities.

What should be done

In light of this resolution, it is necessary to analyze the legal and financial situation of each asset individually. Determining whether a bond has been amortized or whether the payment is due requires a detailed examination of the issuance conditions and the applicable restrictive regulations. It is recommended to assess the particular situation of each financial position to understand how the LIRPF regulations impact the ability to declare these losses.