A new law (RDL 14/2013) exchange into Spanish tax law the EU directives and regulations regarding the deferred tax assets. The law will enter into force from 1 January 2014, and this will affect Spanish financial institutions in the light of the volume of deferred tax assets recognized in years when the Spanish financial system was viewed as changeable.
The law involves changes affecting the timing allocation rule for the elimination of certain items. 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.
