STORIES

16 March, 2016

What your company needs to know prior to closing fiscal year 2015

Share This:

It is mandatory to allocate a reserve for the amount of the reduction

The Spanish tax reform brought a new mechanism to reduce the tax burden of companies, independently of their size.

We refer to the capitalization reserve, a tax incentive that aims at maximising companies’ capitalization through their equity increase as well as the companies impairment cure and their competitiveness.

Prior to the closing of this fiscal year, it is highly recommendable to accurately know how it works.


✔ This incentive results in the non-taxation of the part of the profits, (10% of the equity increase and up to 10% of the taxable profits) allocated in a non-distributable reserve, with no investment requirement in any specific asset.

✔ It applies to companies subject to the general Corporate income tax rate or to the increased 30% rate for companies dedicated to the exploitation of hydrocarbons.

✔ What to take into account:

  • Equity is the one defined by the Corporate income tax regulations, hence excluding certain of its ordinary accounting components such as the year’s result or the legal or statutory reserves, whose allocation is mandatory according to Law and that should not be beneficiaries of any tax relief.
  • The increase of the company’s equity must be maintained during the period of five fiscal years as from the closing of the fiscal year to which this reduction relates.
  • The taxable base that works as a limit of the reduction (at this latter cannot exceed 10% of the former) is a specific concept for the purposes of this incentive. It consists of the taxable base previous to the reduction itself, the reversal of certain impairments that generated deferred tax assets or the offset of pending tax losses carried forward.
  • It is mandatory to allocate a reserve for the amount of the reduction. This reserve must be kept during five years.

✔ Although fiscal year 2015 is about to finish in a few days, a new discussion has recently started as to at which moment does the reserve allocation needs to be done: in fiscal year 2015, in which the equity increase giving rise to this reserve takes place against the previous year’s results; or, in the subsequent fiscal year to the one the equity increase takes place?

✔ It goes without saying that we are in favour of any tax relief that helps reduce Spanish Corporation tax for Spanish companies, despite the practical difficulties we may face in their application.

Share This:

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.