The Superior Court of Justice of Madrid has ruled that the deduction for the impairment loss on the loan is valid

In its judgment of January 31, 2024, the Superior Court of Justice of Madrid examines two main aspects. First, the validity of a loan granted by the appellant entity to another entity, as well as the consideration of such loan as uncollectible, which would allow its deduction as a loss in the impairment of the… Continue reading The Superior Court of Justice of Madrid has ruled that the deduction for the impairment loss on the loan is valid

Announcement for the 2023 Income Tax Campaign

It is hereby informed that the Personal Income Tax (IRPF) declaration campaign for the fiscal year 2023 has been officially launched. From April 3rd to July 1st, 2024, taxpayers in Spain are obligated to file their Income Tax returns. It is relevant to note that the Tax Agency has introduced changes to the IRPF for the fiscal… Continue reading Announcement for the 2023 Income Tax Campaign

Tax Advisor: Crucial Times for ITSGF: Express Procedure and Tax Challenges in Spa

The remarkable speed at which various procedures (legislative, administrative, or judicial) related to the Temporary Solidarity Tax on Large Fortunes (ITSGF) have taken place or are currently underway is particularly noteworthy. Firstly, the promptness in its legislative processing and parliamentary approval stands out. Secondly, the speed of its entry into force and effective application is… Continue reading Tax Advisor: Crucial Times for ITSGF: Express Procedure and Tax Challenges in Spa

Tax Advisor: All you need to know about the Temporary Solidarity Tax on Large Fortunes

Several unconstitutionality appeals filed against the Temporary Solidarity Tax on Large Fortunes (ITSGF) have been rejected by the Constitutional Court. Initially, challenges were admitted, including those filed by the Government Council of Madrid (rec. n.º 616/2023), Andalusia (rec. n.º 1258/2023), Xunta de Galicia (rec. n.º 1951/2023), Madrid Assembly (rec. n.º 1922/2023), and the Government Council… Continue reading Tax Advisor: All you need to know about the Temporary Solidarity Tax on Large Fortunes

Tax advisor: Consequences of divorce on your Personal Income Tax return

First of all, in case of a divorce, the possibility that the whole family unit, composed of spouses not legally separated and their minor or disabled children, can be taxed jointly, disappears. Instead, in the event that the former spouses have minor or adult children with disabilities in common, the family unit can only be… Continue reading Tax advisor: Consequences of divorce on your Personal Income Tax return

Tax Advisor: Extension of the deductions in the Personal Income Tax of the Community of Madrid for 2023

Law 10/2023, of April 12th, which has been published in the Official Gazette of the Community of Madrid, has modified the Law of Madrid’s Assigned Taxes. The objective is to incentivize improvements in rental housing through the introduction of new deductions in the Personal Income Tax. New measures Among all the new measures we will… Continue reading Tax Advisor: Extension of the deductions in the Personal Income Tax of the Community of Madrid for 2023

Tax advisor: The bank certificate is sufficient to prove the loss due to the transfer of financial investments between related companies

The question that arises is the deductibility of losses due to the transfer of financial investments between related companies. The Administration has denied the deduction of the due to the bankruptcy of the related company, considering that the evidence provided by the plaintiff was insufficient. The Chamber considers that the subject matter of the appeal… Continue reading Tax advisor: The bank certificate is sufficient to prove the loss due to the transfer of financial investments between related companies

Tax advisor: Without business concealment, there is no simulation

According to the principles of the General Theory of Law, when a contract is entered into for a different purpose than the one normally attributed to it, a defect in the cause may arise. This situation can be divided into two types of contracts: those with a false cause, in which the parties do not… Continue reading Tax advisor: Without business concealment, there is no simulation

Tax advisor: The Supreme Court partially upholds the challenge on the derivations of joint and several liability of article 42.2 of the General Tax Act.

The Supreme Court ruled in appeal 3742/2021 on this matter. The objective was to establish whether, in cases in which a declaration of liability under article 42.2.a) of the General Tax Act is partially annulled by a court judgment, decreasing its scope, the tax administration has the obligation to issue a new declaratory act of… Continue reading Tax advisor: The Supreme Court partially upholds the challenge on the derivations of joint and several liability of article 42.2 of the General Tax Act.

Tax advisor: The correct benefit indicator to be computed in the Corporate Tax is the cost of personnel, being this the element that contributes the most added value to the final product

The Superior Court of Justice of Valencia has evaluated whether the valuation of the operations carried out by the Administration is correct, specifically in relation to the profit indicator used, which has been the cost of personnel. The appellant argues that the method of valuation of the net operating profit should be based on total… Continue reading Tax advisor: The correct benefit indicator to be computed in the Corporate Tax is the cost of personnel, being this the element that contributes the most added value to the final product