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V3275-18 ·26 December 2018 ·consulta-vinculante Medium impact
Tax

Equity for capital reductions or distribution of share premium must be based on the last closed financial year

A query was raised regarding which equity figures should be used to calculate the limit on returns on movable capital during capital reductions and the distribution of share premiums. The Directorate General for Taxes (DGT) ruled that the figures from the last financial year closed prior to the transaction must be used, regardless of whether the balance sheet has been formally approved.

In 6 key points

How it affects those involved

This ruling provides legal certainty for companies performing capital restructuring or distributing premiums, establishing that the most recent closed financial year's data is the applicable benchmark, even if the formal approval process is pending.

Lifecycle

2018-12-26PublishedPublished 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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