Doctrine by topic · DGT Observatory

Remuneration of Equity: 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 High confidence 10 rulings · 2015–2025

Current position

Expenses assumed by the company that do not correspond to a real economic activity or that lack a labor relationship with the shareholder, such as passenger vehicle expenses for shareholders without a labor relationship, are considered remuneration of equity pursuant to article 15.1.a) of the LIS (Corporate Income Tax Law). These expenses are not tax-deductible for the entity. Likewise, interest on loans between group entities must comply with accrual regulations and market valuation to avoid disqualification.

The DGT's position remains constant in the application of article 15.1.a) of the LIS to exclude the deductibility of expenses that represent a remuneration of equity. The doctrine has moved from focusing on the nature of loans between group entities to specifying that the assumption of personal expenses of shareholders without a labor relationship also constitutes this remuneration.

Turning points

  1. V1751-16

    Clarifies that a modificatory novation of a loan does not convert the operation into a remuneration of equity if the original obligation survives.

  2. V0694-25

    Establishes that the assumption of passenger vehicle expenses by the company is remuneration of equity if the shareholder does not maintain a labor relationship.

Analysis based on 8 of 10 rulings with a stated position. Updated 30 September 2026.

Rulings on this topic

10
V2152-25 13 Nov 2025

Deductibility of participative loan interest depends on group affiliation

SG de Impuestos sobre las Personas Jurídicas
préstamo participativoretribución de fondos propiosgrupo de sociedadesgastos financierosbeneficio operativo LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11
Affects CompanyExpat · Non-residentIndividual
V0694-25 15 Apr 2025

Vehicle tourism expenses not deductible without employment relationship

SG de Impuestos sobre las Personas Jurídicas
amortizacióngastos deduciblesretribución de fondos propiosvehículo de turismorelación laboral LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 15.1.a
Affects CompanyExpat · Non-residentIndividual
V0046-17 13 Jan 2017

No inclusion of income in Corporation Tax due to capital increase via debt offsetting

SG de Impuestos sobre las Personas Jurídicas
ampliación de capitalcompensación de créditosbase imponibleretribución de fondos propiosvaloración mercantil LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11
Affects CompanyExpat · Non-residentIndividual
V4564-16 24 Oct 2016

Returns on participating loans between group companies may qualify as exempt dividends

SG de Impuestos sobre las Personas Jurídicas
préstamo participativodividendos exentosgrupo de sociedadesretribución de fondos propiosgasto fiscalmente deducible LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 15.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1
Affects CompanyExpat · Non-residentIndividual
V1751-16 20 Apr 2016

Interests of a modified participative loan not considered remuneration of own funds

SG de Impuestos sobre las Personas Jurídicas
préstamo participativonovación modificativaretribución de fondos propiosdeducibilidad de gastosimpuesto sobre sociedades LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 15.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 18
Affects CompanyExpat · Non-residentIndividual

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