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Personnel Expenses: 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

Settled doctrine High confidence 17 rulings · 2015–2026

Current position

Expenses for remuneration based on equity instruments that are settled in cash are deductible in the period in which the provision is applied or the expense is allocated to its purpose, pursuant to Article 14 of the LIS (Corporate Income Tax Law). This occurs when the remuneration becomes due to the employee. Extraordinary bonuses and directors' remuneration are also deductible if they comply with accounting recognition, accrual, and documentary justification.

The DGT's position on payments based on equity instruments has maintained a consistent line regarding the timing of deductibility. It has been specified that the expense is not deductible upon accounting recognition, but rather when the remuneration becomes due to the employee. Recent rulings reinforce the application of Articles 14.3.e and 14.5 of the LIS for these types of incentives.

Turning points

  1. V2197-18

    Establishes that payments through the delivery of equity instruments are deductible when the delivery occurs, requiring a positive adjustment if there is only accounting recognition without effective delivery.

  2. V2118-22

    Clarifies that cash payments for equity instruments are not deductible upon accounting recognition, but rather when the remuneration becomes due to the employee.

Analysis based on 14 of 17 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

17
V2049-24 25 Sept 2024

Cash-based incentive plan expenses deductible in the year provision is made

SG de Impuestos sobre las Personas Jurídicas
pagos basados en instrumentos de patrimoniodevengoimputación temporalprovisióngastos de personal LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11
Affects CompanyExpat · Non-residentIndividual
V2047-24 25 Sept 2024

Employee incentive plan expenses not deductible at accounting entry

SG de Impuestos sobre las Personas Jurídicas
pagos basados en instrumentos de patrimoniodevengogastos de personalprovisiónbase imponible LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11
Affects CompanyExpat · Non-residentIndividual
V1807-22 29 Jul 2022

Staff costs for equity-settled transactions are only deductible upon delivery

SG de Impuestos sobre las Personas Jurídicas
pagos basados en instrumentos de patrimoniogastos de personaldeducibilidadentrega de instrumentosvalor razonable LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11.1
Affects CompanyExpat · Non-residentIndividual
V2197-18 24 Jul 2018

Staff costs for equity-settled payments are only deductible upon delivery

SG de Impuestos sobre las Personas Jurídicas
gastos de personalinstrumentos de patrimoniobase imponibledevengoajuste positivo LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11.1
Affects CompanyExpat · Non-residentIndividual
V1284-16 29 Mar 2016

Requirements for the additional 17% tax deduction for dedicated qualified research personnel

SG de Impuestos sobre las Personas Jurídicas
deducción por investigación y desarrolloinvestigador cualificadoadscripción en exclusivabase de la deduccióninforme motivado TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 35.1.aTRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 35.1.c
Affects CompanyExpat · Non-residentIndividual
V2121-15 10 Jul 2015

Services from a non-resident company in Spain may be deductible

SG de Impuestos sobre las Personas Jurídicas
deducción por producción audiovisualindustrias técnicasbase de deduccióngastos de personalterritorio español LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 36.2
Affects CompanyExpat · Non-residentIndividual

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