Sales season has started in Spain. And, we are not only referring to consumer products but also to Spanish Corporation tax.

A general reduction of the nominal Corporate income tax rate brings about the possibility to reduce company taxation and taxable profits by allocating them to specific reserves.

Although not exempt from criticism, the Spanish tax reforms brings hopeful news for the coming year. Discover how you can reduce company taxation.

✔The progressive reduction of the nominal Corporate income tax rate will permit moving from a 30 per cent tax rate to a 25%. In fiscal year 2015, the rate will be of 28% and it will reduce to 25% in fiscal year 2016.

A reduction of five percentage points that situates Spain in a level of taxation substantially below the countries of our environment.

✔Besides, two new tax incentives related to the companies’ equity have been introduced: one applying to all Corporate tax payers and a second one applying to reduced- size companies.

✔ The capitalization reserve aims at maximising companies’ capitalization through their equity increase. It 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.

The Spanish General Directorate of Taxes has clarified when intra- group transactions have to be eliminated

✔ A levelling reserve: an incentive for small-sized companies that permits reducing taxation in a given year with tax losses to be generated in the five subsequent years, anticipating their application.

✔ The combined application of the above measures offers a real opportunity to increase profitability of Spanish investments that is worth noting and that can become a decisive factor to locate further investments in Spain.


Publicado el 01-2015 por PBS