Shareholders of companies with suspended trading cannot declare capital losses immediately

The situation of shares in an entity that stop trading on the market creates uncertainty regarding the tax treatment of their value. Recently, the Directorate General of Taxes (DGT) has specified the exact moment when a shareholder can recognize a capital loss for their Personal Income Tax (IRPF) declaration.

What the DGT has resolved

The advisory body has determined that the suspension or exclusion from trading of shares does not automatically entail a capital loss for the entity's shareholders. The criteria establish that, for a loss to be computed as provided in Article 37.1, e) of the Personal Income Tax Law (LIRPF), it is indispensable that the dissolution and subsequent liquidation of the company occur first.

In this sense, the administration points out that the tax period for recognizing said loss will be the one in which the liquidation is formalized, as it is at that moment that the necessary change in assets for the tax computation is considered to occur.

What this means for you

If you are an individual who holds shares in an entity whose trading has been suspended, you cannot take for granted that the drop in the value of your assets is deductible in your tax return immediately. The mere impossibility of trading the securities on the market does not trigger the right to declare a capital loss.

This criterion implies that, as long as the company continues to exist and has not proceeded to its liquidation, the value of the shares remains in your assets without the suspension of their trading constituting a tax alteration that allows for the integration of a loss into the savings tax base.

What you should do

In this scenario, it is necessary to monitor the legal status of the company in which you are a shareholder. The possibility of applying a capital loss is contingent upon the evolution of the entity and the eventual decision of the shareholders to proceed with its dissolution and liquidation. It is recommended to assess each particular situation to determine the appropriate moment for liquidation and its impact on the savings tax base.