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Direct Estimation Method: 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

Stable position Low confidence 68 rulings · 2014–2026

Current position

Impairment losses on securities representing participation in capital are not deductible if the requirements of article 21 of the Law on Corporate Tax (LIS) are met. A participation of at least 5% must be maintained uninterruptedly during the previous or subsequent year. Furthermore, the non-resident entity must be subject to an analogous foreign tax of at least 10% or reside in a country with a double taxation treaty.

The sequence does not show an evolution on a single concept, but rather deals with diverse matters such as objective estimation, deductibility of expenses, fair value, and impairment of securities. There is no single doctrinal trajectory, but rather isolated criteria on different factual scenarios. The position on the deductibility of impairment losses remains in line with the Corporate Tax (IS) regulations.

Analysis based on 63 of 68 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V0007-26 8 Jan 2026

Subsidy to cancel debt will be recognised as income upon debt settlement

SG de Impuestos sobre las Personas Jurídicas
subvención no reintegrableimputación de ingresoscancelación de deudamétodo de estimación directapatrimonio neto LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11
Affects CompanyExpat · Non-residentIndividual
V2116-25 6 Nov 2025

Income from property sale arises upon transfer of control under accounting rules

SG de Impuestos sobre las Personas Jurídicas
devengobase imponibletransferencia de controlnormativa contablemétodo de estimación directa LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11
Affects CompanyExpat · Non-residentIndividual
V1961-25 16 Oct 2025

In finance lease-backs, no taxable income or asset amortisation is affected

SG de Impuestos sobre las Personas Jurídicas
lease-backarrendamiento financierométodo de estimación directapasivo financieroamortización 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
V2686-21 5 Nov 2021

No recognition of income or expenses for works carried out on behalf of the lessor

SG de Impuestos sobre las Personas Jurídicas
imputación temporalmétodo de estimación directaarrendamiento operativoinmovilizado materialintermediación LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11.3
Affects CompanyExpat · Non-residentIndividual
V1110-20 28 Apr 2020

Tax admissibility of using the administrative system for inventory valuation

SG de Impuestos sobre las Personas Jurídicas
sistema administrativosistema especulativoexistenciasbase imponibleresultado contable LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11
Affects CompanyExpat · Non-residentIndividual

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