Tax Commentary 2-2013


Urgent memorandum on the new measures relating to deferred tax assets contained in Royal Decree-Law 14/2013

1. Introduction

Within the set of measures adopted by Royal-Decree-law 14/2013, one of the most-awaited issues was the regulation of deferred tax assets (“DTA”).

Those measures are contained in Final Provision 2 of the Royal Decree-law amending the Revised Corporate Income Tax Law (“TRIS”), which are the subject-matter of this memorandum.

Basically, the new legislation approved states that certain temporary differences deriving from bad debts and pensions will receive a special treatment as regards their inclusion in the tax base, with retroactive effects for tax periods commencing on or after January 1, 2011. Moreover, for tax periods commencing on or after January 1, 2014, the timing differences which, after taking into account the aforementioned rules, cannot be used in certain circumstances (either because the taxpayer incurs accounting losses or because it is liquidated or has an insolvency order against it) can be “converted” into current credits against the tax authorities (which can be cash-settled or offset against other current tax debts, at the taxpayer’s option). Lastly, the provision establishes that after certain periods have elapsed without being able to use those tax assets, they can be exchanged for public debt securities.

2. Tax measures

  • 2.1 Measures taking effect for fiscal years commencing on or after January 1, 2011: special timing for Corporate Income Tax deduction regarding certain adjustments
  • 2.2 Conversion of certain DTAs into credits against the tax authorities


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