This change, which appears shortly before the end of filing the 2017 Corporate income tax of companies having a fiscal year coinciding with the calendar year, adds complexity to the practical application of this incentive as it obliges to a change of criterion of taxpayers that are aware of this new resolution.The Spanish General Directorate of Taxes (GDT) has just resolved with respect to the computation of the equity in companies subject to the Group tax system, for the purposes of calculating the capitalization reserve.
In previous resolutions, the Directorate followed the criterion of considering the equity of the companies forming part of the group, without taking into account intra group eliminations or incorporations. In the binding resolution CV 1836 – 18 of June 22, it has modified its criterion by determining that the eliminations and incorporations must be taken into account.
Despite companies are still in due term to file their 2017 Corporate income tax return, following this new criterion implies that the final tax shall not coincide with the one informed in the annual accounts that were formulated by the Administration body.
✔ When a group of companies is subject to the tax consolidation scheme, Spanish tax regulations establish that the capitalization reserve must relate to the group, without clarifying whether the group eliminations and incorporations deriving from the scheme must be taken into account.
✔ The Spanish GDT has determined that, to calculate the equity increase for the capitalization reserve, the difference between the group equity at the beginning and at the end of the fiscal year has to be taken into account.
Consequently, the calculation is determined by adding the equity of the group companies, as well as the eliminations and incorporations of intra group transactions.
✔ With this new consultation, there is a change of criterion with respect to the one established in previous consultations, with issue date 15 November 2016 and number V4962 – 16 and 23 January 2017, with registry V0134 – 17, respectively.
In these consultations, the computation had to be done taking into account the sum of the companies’ equity, without the eliminations and incorporations.
✔ Such criterion was mainly followed by taxpayers upon calculating their Corporate Income Tax for fiscal year 2016. This change, which appears shortly before the end of filing the 2017 Corporate income tax of companies having a fiscal year coinciding with the calendar year, adds complexity to the practical application of this incentive as it obliges to a change of criterion of taxpayers that are aware of this new resolution.
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Publicado el 07-2018 por PBS