Doctrine by topic · DGT Observatory

Subsidiary Companies: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

← DGT Observatory

How the DGT's position has evolved

Refined position High confidence 11 rulings · 2014–2023

Current position

The forgiveness of a debt between subsidiary companies does not generate a tax expense or income if it is carried out in the same proportion as the shareholders' participation, being treated as a distribution of reserves and a contribution of equity. Any excess over said participation is considered a gratuity, treated as a non-deductible expense for the creditor and income for the debtor. In IRPF (Personal Income Tax), the operation has no effects on individual shareholders as they are unrelated to the loan.

The DGT's position has moved from considering debt forgiveness as a neutral operation with no effects on the tax base (V2750-14, V0936-15) to establishing a technical distinction based on the shareholders' participation. Since 2016, the Administration has specified that only the portion proportional to the participation is neutral, qualifying the excess as a gratuity with tax effects (V3463-16, V2431-23).

Turning points

  1. V3463-16

    Introduces the distinction between the portion proportional to the shareholders' participation and the excess. The excess is treated as a non-deductible expense for the donor and as income for the debtor.

Analysis based on 9 of 11 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

11

Apply this to your case

Corporate tax advisoryTalk to the team applying this doctrine daily.
Talk to the tax teamWe check whether this criterion affects you and what it means in your situation.
Email
Contact