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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 27 rulings · 2014–2026

Current position

Negative income derived from the transfer of shares in entities leaving a tax group is not included in the taxable base if the requirements of Articles 21.1 and 21.3 of the LIS (Corporate Income Tax Law) are met, requiring a permanent extra-accounting adjustment. In cases of dissolution, the negative income resulting from the difference between the market value of the assets received and the tax value of the share is deductible, but must be reduced by the dividends received in the ten years prior to the dissolution.

The DGT's position has evolved from treating the non-deductibility of foreign negative income (V0110-14) to precisely defining the treatment of negative income in transfer operations and exits from tax groups. The application of permanent extra-accounting adjustments to prevent the inclusion of negative income in specific transfer scenarios (V2814-21) has been consolidated, and the deduction rules in dissolution processes have been specified (V0552-26).

Turning points

  1. V2814-21

    Establishes that negative income from the transfer of shares is not included if the requirements of Articles 21.1 and 21.3 of the LIS are met, requiring a permanent extra-accounting adjustment.

  2. V0552-26

    Specifies that the negative income from the difference between the market value of assets received and the tax value of the share in a dissolution is deductible, subject to reduction by dividends received in the ten preceding years.

Analysis based on 23 of 27 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
V0552-26 10 Mar 2026

Negative income from the dissolution of a linked entity is deductible

SG de Impuestos sobre las Personas Jurídicas
deterioro de créditosentidades vinculadasdisolución y liquidaciónrentas negativasextinción de entidad LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11
Affects CompanyExpat · Non-residentIndividual
V2434-22 24 Nov 2022

Losses from share deterioration not deductible if exemption criteria met

SG de Impuestos sobre las Personas Jurídicas
deterioro de valoresrentas negativasexención de dividendostransmisión de participacionesextinción de sociedad 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
V5038-16 21 Nov 2016

Losses from share expropriation exempt from dividend minorisation rules

SG de Impuestos sobre las Personas Jurídicas
rentas negativasexpropiaciónparticipaciones en entidades no residentesdoble imposiciónreclasificación contable TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 21.5TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 32.6
Affects CompanyExpat · Non-residentIndividual
V2214-16 23 May 2016

2012 subordinated debt losses may be offset against 2014 investment income

SG de Tributación de las Operaciones Financieras
deuda subordinadarentas negativasrendimientos del capital mobiliariopérdidas patrimonialesbase imponible del ahorro LIRPF — Ley 35/2006 del IRPF art. 48.bLIRPF — Ley 35/2006 del IRPF art. 49.1
Affects CompanyExpat · Non-residentIndividual
V1408-15 5 May 2015

Joint ventures may establish separate permanent establishments

SG de Impuestos sobre las Personas Jurídicas
establecimiento permanenteexención de rentasunión temporal de empresasgestión separadadoble imposición internacional LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 22LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 31
Affects CompanyExpat · Non-residentIndividual
V0152-15 19 Jan 2015

Losses from foreign permanent establishments not deductible from 2013

SG de Impuestos sobre las Personas Jurídicas
establecimiento permanenterentas negativasbase imponibleexencióndeducción TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 14.1TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 22
Affects CompanyExpat · Non-residentIndividual

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