STORIES

18 July, 2018

Calculating the Capitalization Reserve in Spain: New Criterion of the DGT

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.

CONTACT

MADRID
Pedro Teixeira 8, planta 4ª, 28020
T+34 91 192 21 22

MAP

BARCELONA
General Mitre 28-30 08017.
T+34 93 363 65 10

MAP

Based in Barcelona and Madrid. Englobally is our Latin American business partner established in Santiago de Chile.

We are also part of Englobally Group, an international association of independent accounting and advisory firms that provide a one-stop shop managed solution for accounting, payroll and HR needs, with member firms in over 25 countries and associates working in many others. Many fast growing technology and lifescience businesses find their international services invaluable. Companies in many other sectors are attracted by the close and supportive way Englobally Group works.

Name

E-mail

Message

Please type the code below

captcha

  • Este sitio web utiliza Cookies de terceros y de análisis, para recopilar información con la finalidad de mejorar nuestros servicios, así como para analizar sus hábitos de navegación. Si continúas navegando, supone que aceptas expresamente la instalación de las mismas. Tienes la posibilidad de configurar tu navegador pudiendo, si así lo deseas, impedir que sean instaladas en tu dispositivo, aunque deberás tener en cuenta que dicha acción podrá ocasionar dificultades de navegación de la página web.

  • De conformidad con lo establecido en la normativa vigente en materia de Protección de Datos de Carácter Personal, le informamos que sus datos serán incorporados al sistema de tratamiento titularidad de PROFESSIONAL BOOKKEEPING SERVICES S.L. con CIF B59830638 y domicilio social sito en RONDA DEL GENERAL MITRE 28 08017, BARCELONA, con la finalidad de atender sus consultas. En cumplimiento con la normativa vigente, PROFESSIONAL BOOKKEEPING SERVICES S.L. le informa que sus datos serán conservados durante el plazo estrictamente necesario para cumplir con las acciones mencionadas con anterioridad.

    Salvo comunicación contraria por su parte, entenderemos que sus datos no han sido modificados, que usted se compromete a notificarnos cualquier variación respecto de los mismos, y que usted da su expreso consentimiento para que PROFESSIONAL BOOKKEEPING SERVICES, S.L. utilice los mencionados datos para las finalidades mencionadas.

    PROFESSIONAL BOOKKEEPING SERVICES S.L. le informa que procederá a tratar los datos de manera lícita, leal, transparente, adecuada, pertinente, limitada, exacta y actualizada. Es por ello que PROFESSIONAL BOOKKEEPING SERVICES S.L. se compromete a adoptar todas las medidas razonables para que estos datos se supriman o rectifiquen sin dilación cuando sean inexactos.

    De acuerdo con los derechos que le confiere la normativa vigente en materia de protección de datos podrá ejercer los derechos de acceso, rectificación, limitación de tratamiento, supresión, portabilidad y oposición al tratamiento de sus datos de carácter personal, así como del consentimiento prestado para el tratamiento de los mismos, dirigiendo su petición a la dirección postal indicada más arriba o al correo electrónico info@pbs.es.

    Podrá dirigirse a la Autoridad de Control competente para presentarla reclamación que considere oportuna.

    El envío de estos datos, implica la expresa aceptación de esta cláusula.

  • Pursuant to current Personal Data Protection Regulations, you are hereby informed that your data will be included in a processing system owned by PROFESSIONAL BOOKKEEPING SERVICES S.L. with Tax ID No. B59830638, with its registered address at RONDA DEL GENERAL MITRE 28, 08017 BARCELONA (SPAIN), in order to deal with your questions and requests. In compliance with current regulations, PROFESSIONAL BOOKKEEPING SERVICES S.L. hereby informs you that your data will be kept for as long as is strictly necessary to complete the aforementioned action.

     

    Unless otherwise stated, we will consider that your data have not been modified, that you undertake to inform us of any modifications thereto, and that you give your express consent for PROFESSIONAL BOOKKEEPING SERVICES, S.L. to use said data for the specified purposes.

     

    PROFESSIONAL BOOKKEEPING SERVICES S.L. informs you that it will proceed to process your data in a lawful, loyal, suitable, relevant, limited, exact and updated manner. Therefore, PROFESSIONAL BOOKKEEPING SERVICES S.L. undertakes to apply all reasonable measures to ensure that any incorrect data are deleted or corrected without delay.

     

    According to the rights granted to you under current data protection regulations, you will be entitled to exercise your rights of access, rectification, limitation on processing, suppression, portability or opposition regarding the processing of your personal data and your consent to the same, by addressing a written request to the postal address provided above or to the email address info@pbs.es.

    By sending these data, you are expressly accepting this clause.