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A query was raised regarding whether dividend distributions or the existence of accounting losses breach the requirement to maintain the increase in equity for the capitalisation reserve. The DGT ruled that maintenance refers to the total amount of the increase rather than specific equity items.
This clarification provides legal certainty for companies using capitalisation reserves, confirming that the maintenance requirement is assessed on a global basis rather than on a line-by-line basis within equity.
The tax team reviews your specific situation.
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