…the reduction deriving from the capitalization reserve benefit can be applied in the taxable base of such fiscal year…In a recent binding consultation dated Dec. 22, 2015 (CV4127-15) the Spanish Directorate of Taxes has clarified, with respect to a company having a fiscal year coinciding with the calendar year in 2015, that the reduction deriving from the capitalization reserve benefit can be applied in the taxable base of such fiscal year and that the allocation of the reserve can be carried out within the legal term to approve the 2015 annual accounts.
This clarification was absolutely necessary in view of the doubts that the current wording of the Law had generated.
✔ As we had informed prior to this post, a new discussion had recently started as to at which moment does the reserve allocation need 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?
We remind you that such reserve is an essential requirement so as to apply a 10% reduction to the taxable result, (based on the increase of the company’s equity in the fiscal year) and that it must be registered for an amount equal to the reduction.
✔ The Spanish Directorate of Taxes considers that, since the increase of the company’s equity can only be determined at the end of the fiscal and in so far as there is an increase of the reserves, the formal registration of a separate non-disposable reserve can be done within the legal term to approve the annual accounts of the fiscal year in which the reduction is applied.
✔ As an example, a company having a 2015 fiscal year coinciding with the calendar year and whose equity on Dec. 31,2 015 has increased with respect to Jan. 01, 2015, having increased its reserves, can apply the reduction. The company will have a six-months term as from the closing of the fiscal year (that is to say, up until June 30, 2016) to reclassify the reserve corresponding to the capitalization reserve.
It will be a non-disposable reserve during five years to be counted as from Dec. 31, 2105.
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Publicado el 01-2016 por PBS