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V2099-22 ·30 September 2022 ·consulta-vinculante Medium impact
Tax

Dividend distribution from reserves does not breach the equity increase reduction if the total amount is maintained

A query was raised regarding whether distributing dividends from voluntary reserves affects the requirement to maintain the equity increase to apply the reduction under Article 25 of the Corporate Income Tax Act (LIS). The Directorate General for Taxes (DGT) ruled that the maintenance requirement refers to the total amount of the increase rather than specific line items.

In 6 key points

How it affects those involved

Companies distributing dividends from voluntary reserves must ensure that the overall total of the equity increase is preserved to qualify for the tax reduction under Article 25 LIS.

Lifecycle

2022-09-30PublishedPublished 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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