Doctrine by topic · DGT Observatory

Bad Debt: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Refined position High confidence 21 rulings · 2014–2026

Current position

The reduction of the tax base due to bad debts requires certainty that the debt will not be paid. In debts secured by collateral, a modification is permitted if the cancellation of the collateral is demonstrated and a certification is provided by the insolvency administration proving the uncollectibility following liquidation. The non-payment of third-party debts does not generate an automatic loss of assets, but rather a credit right that is only imputable when it becomes judicially uncollectible.

The DGT's position has evolved from a restrictive interpretation of the terms and requirements for modifying the tax base toward a stance more aligned with the doctrine of the TEAC (Economic-Administrative Litigation Tribunal). The impossibility of modifying the tax base for debts secured by collateral has been nuanced, allowing it if uncollectibility is proven following insolvency liquidation. The criterion regarding the nature of the loss of assets in the event of non-payment of debts or credit rights remains constant.

Turning points

  1. V0691-23

    Introduces the possibility of modifying the tax base for debts secured by collateral if it is demonstrated with absolute certainty that no payment will be made, following the doctrine of the TEAC.

  2. V2153-23

    Specifies that uncollectibility in secured debts is proven through the cancellation of the collateral and the certification from the insolvency administration following the liquidation phase.

Analysis based on 21 of 21 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

21
V0993-20 22 Apr 2020

Loss of capital cannot be recognised without legal requirements

SG de Impuestos sobre la Renta de las Personas Físicas
pérdida patrimonialderecho de créditoimputación temporalejecución forzosacrédito incobrable LIRPF — Ley 35/2006 del IRPF art. 14.2.kLIRPF — Ley 35/2006 del IRPF art. 33.1
Affects CompanyExpat · Non-residentIndividual
V1979-15 25 Jun 2015

Requirements for recognising a capital loss on an uncollected credit

SG de Impuestos sobre la Renta de las Personas Físicas
pérdida patrimonialderecho de créditobase imponible generalcrédito incobrablerendimientos LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 45
Affects CompanyExpat · Non-residentIndividual

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