Tax issues to be considered in the liquidation of a company
The dissolution and liquidation of a company is not fiscally neutral, that is, it can have important consequences for the partners of the company.
The following are the main fiscal aspects to be taken into account at the time of the liquidation of the company:
Aspects to the liquidation of a company
- If the real value of the assets to be awarded to the partners is higher than their book value, said higher value must be declared as the transfer value of the asset and the corresponding benefit that will be part of the result of the closing year determined.
- If partners are awarded assets, the corresponding VAT should be applied if applicable.
- In any case, it will be necessary to forecast the payment of Corporation Tax for the year that is being closed, since this will reduce the liquidation fee to be assigned to the partners, as well as provisioning the expenses derived from the liquidation of the company, since they will reduce their final accounting result and, therefore, the corporate tax payable.
- Company tax must be paid for the fiscal year that ends with the liquidation of the company within the legally established period (25 days after the 6 months from the closing date of the fiscal year, which in this case would be the approval date of the liquidation balance).
- Likewise, it will be necessary to present a tax declaration in the same period as indicated but counting from the inscription of the liquidation in the Mercantile Registry.
- When there is a liquidation quota to distribute among the partners, 1% of the quota received by each member in respect of corporate operations tax must be paid to the relevant
Finally, indicate that currently the AEAT has established a process this year of review of inactive companies that are being withdrawn from the census, of the Mercantile Registry if the updating of their tax obligations is not proven.
If you have doubts about the tax consequences of the dissolution of your company contact us without obligation and we will inform you.