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V0749-22 5 April 2022 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · reserva de capitalización

Dividend distribution does not breach capitalisation reserve requirements if total equity increase is maintained

The applicant asks whether distributing dividends from voluntary reserves breaches the requirement to maintain the increase in equity associated with the capitalisation reserve. The DGT rules that this requirement refers to the total amount of the increase in equity rather than to specific line items.

The question raised

Whether the distribution of dividends carried out in the year 2020 breaches the provisions of article 25.1.a) of Law 27/2014, of November 27, on Corporate Income Tax. Specifically, whether what must be maintained is the amount reflected in the capitalization reserve.

The DGT's ruling

The requirement to maintain the increase in equity refers to the global amount and not to each of the individual items that compose it. The disposal of concepts that form part of the equity does not constitute a breach if the increase in equity is maintained on a global basis. To verify compliance, the difference between the equity at the close of the financial year (excluding the results thereof) and that at the beginning (excluding the results of the previous financial year) must be equal to or greater than the increase that gave rise to the reduction.

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