Post by account_disabled on Mar 6, 2024 21:12:32 GMT -8
If the parent entity grants financing to the subsidiary through a loan, the interest rate agreed upon must be the market rate ; otherwise, the tax administration would consider the market interest for the purposes of determining the financial income and expense. respective to determine the tax base of both entities (LIS art. 18). If this loan is not amortized within the agreed schedule due to the subsidiary's lack of liquidity, for accounting purposes the parent company may charge an expense for the deterioration of that credit to the extent that the risk of not recovering is estimated .
However, for tax purposes this expense is not deductible in the parent company since it responds to a deterioration of a credit on a Asia Mobile Number List related entity, so a positive adjustment would have to be made to the accounting result for the amount of that expense to determine the base. taxable amount for that tax period. If as a consequence of these losses the subsidiary enters into a commercial situation of dissolution (net assets less than half of the share capital), it may consider capitalizing thiscredit in the subsidiary by increasing its capital by the amount of the debt with the parent company .
If this capitalization is made, it would not recover the tax deduction for the impairment previously allocated and not deducted. Divestment of participation Given the situation of unviability of the investment, divestment can be considered in one of the following two ways: Transfer to third parties of the participation in the subsidiary. In the tax period in which this transfer takes place, the tax deduction for impairment on the loan would be recovered since the link disappears .
If in this transfer the income generated is negative (difference between the sale price and the tax value of the participation without taking into account the amount of the impairment not deducted), that negative income would not be deductible (LIS art. 21.6) and Therefore, the tax deduction for this deterioration is not recovered. Liquidation of the subsidiary. In the tax period in which the liquidation of the subsidiary takes place, if the total amount of the loan is not recovered, a negative income would be generated in the parent company, deductible for the difference between the amount recovered and the nominal amount of the loan .
However, for tax purposes this expense is not deductible in the parent company since it responds to a deterioration of a credit on a Asia Mobile Number List related entity, so a positive adjustment would have to be made to the accounting result for the amount of that expense to determine the base. taxable amount for that tax period. If as a consequence of these losses the subsidiary enters into a commercial situation of dissolution (net assets less than half of the share capital), it may consider capitalizing thiscredit in the subsidiary by increasing its capital by the amount of the debt with the parent company .
If this capitalization is made, it would not recover the tax deduction for the impairment previously allocated and not deducted. Divestment of participation Given the situation of unviability of the investment, divestment can be considered in one of the following two ways: Transfer to third parties of the participation in the subsidiary. In the tax period in which this transfer takes place, the tax deduction for impairment on the loan would be recovered since the link disappears .
If in this transfer the income generated is negative (difference between the sale price and the tax value of the participation without taking into account the amount of the impairment not deducted), that negative income would not be deductible (LIS art. 21.6) and Therefore, the tax deduction for this deterioration is not recovered. Liquidation of the subsidiary. In the tax period in which the liquidation of the subsidiary takes place, if the total amount of the loan is not recovered, a negative income would be generated in the parent company, deductible for the difference between the amount recovered and the nominal amount of the loan .