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Negative Income: 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 19 rulings · 2014–2024

Current position

Negative income derived from the dissolution of a company or the transfer of shares is deductible pursuant to Article 21.8 of the LIS (Corporate Income Tax Law). In dissolution processes, the difference between the market value of the assets received and the tax value of the share must be integrated. This negative income must be reduced by the dividends received in the ten years prior to the dissolution.

The DGT's position remains stable regarding the deductibility of negative income from transfers or dissolutions, provided that the exemption requirements are met. The doctrine has clarified the application of the reduction for dividends received and the integration of differences between market value and tax value in dissolution processes.

Turning points

  1. V2520-24

    Clarifies that negative income from dissolution is deductible pursuant to Art. 21.8 LIS, but must be reduced by the dividends received in the ten years prior.

Analysis based on 18 of 19 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

19
V1856-24 6 Aug 2024

Negative income from subsidiary dissolution deductible under art. 21.8 LIS

SG de Impuestos sobre las Personas Jurídicas
consolidación fiscalrenta negativadisolución y liquidaciónentidad dominantevalor de mercado LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 17.5LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 17.8
Affects CompanyExpat · Non-residentIndividual
V1436-24 14 Jun 2024

Loss from dissolution of foreign entities deductible without restructuring

SG de Impuestos sobre las Personas Jurídicas
renta negativaextinción de entidadreestructuraciónliquidaciónentidad participada LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 17.8LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1
Affects CompanyExpat · Non-residentIndividual
V2830-16 21 Jun 2016

Losses from purchasing shares above market value are tax-deductible

SG de Impuestos sobre las Personas Jurídicas
base imponiblerenta negativavalor de mercadoinstrumento financieroopción de compra LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V0456-16 5 Feb 2016

Reversal of impairment is not taxable if it was not tax-deductible

SG de Impuestos sobre las Personas Jurídicas
deterioro de valorbases imponibles negativasconsolidación fiscalreversión de deteriorotransmisión de participaciones TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 90.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 62.2
Affects CompanyExpat · Non-residentIndividual
V3383-14 26 Dec 2014

Losses from share reduction due to expropriation are deductible

SG de Impuestos sobre las Personas Jurídicas
renta negativaexención por doble imposicióndeterioro de valortransmisión de elementos patrimonialesprocedimiento expropiatorio TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 15.1TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 21.4
Affects CompanyExpat · Non-residentIndividual

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