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V0295-22 ·16 February 2022 ·consulta-vinculante Medium impact
Tax

Dividend distributions do not affect RIC provisions if equity increases by the amount of the provision

A company queried whether distributing dividends derived from profits obtained outside the Canary Islands would affect the calculation of the Canary Islands Investment Reserve (RIC). The DGT ruled that if the dividend distribution does not reduce equity by an amount exceeding the RIC increase, the tax incentive remains unaffected.

In 6 key points

How it affects those involved

This ruling provides legal certainty for companies operating in the Canary Islands, confirming that dividend payments do not automatically disqualify them from RIC benefits, provided the equity levels are maintained relative to the reserve provision.

Lifecycle

2022-02-16PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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