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V1907-18 ·28 June 2018 ·consulta-vinculante Medium impact
Tax

Dividend distributions do not affect the Canary Islands Investment Reserve if equity increases

A company requested clarification on whether dividend distributions affect the calculation of the Canary Islands Investment Reserve (RIC). The Directorate-General for Tax (DGT) ruled that distributions do not impact the incentive, provided that equity increases by an amount equal to the RIC provisioned.

In 6 key points

How it affects those involved

Companies utilizing the RIC incentive can distribute dividends without losing the tax benefit, as long as they ensure their equity increases by the same amount as the reserve provisioned.

Lifecycle

2018-06-28PublishedPublished 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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