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V0255-18 5 February 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · reserva de capitalización

Distribution of reserves within a tax group does not breach equity maintenance requirements if the increase is maintained at group level

A company representing a tax group has enquired whether distributing reserves from one of its members affects the equity maintenance requirement for the capitalisation reserve reduction. The DGT has ruled that the requirement refers to the total increase in the tax group's equity.

The question raised

1) Whether the requirement to maintain equity would be affected by the distribution of voluntary reserves from company B to company A, or whether the amount of equity would remain unaltered if considered at the tax group level.

The DGT's ruling

In the tax consolidation regime, the capitalization reserve refers to the tax group. The requirement to maintain equity is met as long as the amount of the increase in equity is maintained at the group level during the five-year period. Therefore, the distribution of reserves does not constitute a breach if the increase in the group's equity is maintained throughout all years of the maintenance period.

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