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Provision: 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 13 rulings · 2014–2026

Current position

Expenses for remuneration based on equity instruments settled in cash are not deductible in the period of their accounting registration pursuant to article 14.3.e) of the LIS (Corporate Income Tax Law). Deductibility occurs in the period in which the provision is applied or the expense is allocated to its purpose, i.e., when the remuneration becomes due. For all other expenses, deductibility is maintained if they comply with accounting registration, accrual, and documentary justification.

The DGT's position remains constant regarding the general deductibility of provisions for contractual obligations. However, a specialization is observed in the treatment of payments based on equity instruments settled in cash, where the DGT applies a deferral of deductibility until the expense becomes due. This stance has been reiterated in the most recent rulings of 2024 and 2026.

Turning points

  1. V2118-22

    Establishes that personnel expenses for payments based on equity instruments settled in cash are not deductible in the period of accounting registration, but rather when the remuneration becomes due.

Analysis based on 12 of 13 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

13
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

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