Global

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  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/18/2013

Spain - New law on treatment of deferred tax assets  

December 18: New law (RDL 14/2013) transposes into Spanish tax law the EU directives and regulations concerning the supervision and solvency of financial institutions.

The effective date for the Spanish implementing regulations is 1 January 2014, and this will affect Spanish financial institutions in light of the volume of deferred tax assets recognized in years when the Spanish financial system was viewed as unstable.


The law includes changes affecting the timing allocation rule for the deduction of certain items (effectively allowing institutions to include the “reversal” of certain deferred tax assets in the income tax base up to a limit based on the taxpayer’s taxable income (before any tax losses are offset)).


For tax periods beginning on or after 1 January 2014, taxpayers may convert deferred tax assets into credits (giving rise to a receivable from the tax authorities) effectively “monetizing” the deferred tax assets.


Read a December 2013 report [PDF 201 KB] prepared by the KPMG member firm in Spain: New tax legislation introduced by Royal Decree-Law 14/2013 of 29 November 2013 on urgent measures to adapt Spanish law to European Union legislation on the supervision and solvency of financial institutions




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