Deductibility of credit impairment losses on claims arising from potential insolvencies of debtors in small companies.

Royal Decree-Law 35/2020, of December 22, on urgent measures to support the tourism, hospitality and commerce sector and in tax matters establishes in its article 14 that taxpayers of Corporate Tax who meet the conditions of the article 101 of the LIS to be considered small companies , in the tax periods that begin in 2020 and in In 2021 may deduct , in said periods, the losses due to deterioration of credits derived from the possible insolvencies of debtors when three months have passed since the expiration of the obligation referred to in letter a) of article 13.1 of the LIS.

Therefore, for small companies, the period established to deduct losses arising from the impairment of credits arising from the possible insolvency of debtors has been reduced from 6 months to 3 months, the time that must have elapsed between the obligation becoming due and the accrual of the tax.

You can consult all the particularities of the special regime for Small Entities in Chapter 10 of this Practical Manual.