Losses due to debtor insolvencies

Losses due to impairment of credits derived from possible insolvencies of debtors will be deductible when, at the time of accrual of the tax, any of the circumstances provided for in Art. 13 of the Companies Law occur, that is:

1. That the period of 6 months has elapsed since the expiration of the obligation.

2. That the debtor is declared to be in bankruptcy proceedings.

3. That the debtor is being tried for asset stripping.

4. That the obligations have been claimed by the courts or are in litigation or arbitration proceedings, the solution of which depends on their collection.