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V1274-16 29 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · base imponible

Application of the 20% reduced rate on taxable income up to €300,000 in 2014

A pig fattening company has enquired whether it may apply the 20% tax rate to taxable income between €0 and €300,000 for the 2014 tax year. The Directorate General of Taxes (DGT) has ruled that this is permissible, provided the company meets the turnover and average headcount requirements set out in Additional Provision 12 of the Corporate Income Tax Law (TRLIS).

The question raised

Whether the 20% tax rate provided for in Additional Provision 12 of the TRLIS applies to the portion of the taxable base between 0 and 300,000 euros in the 2014 tax period.

The DGT's ruling

Entities with a turnover of less than 5 million euros and an average workforce of fewer than 25 employees may be taxed using a reduced scale. For periods commencing in 2014, the 20% rate applies to the taxable base between 0 and 300,000 euros. Application requires that the average workforce is not lower than the unit or the average of the twelve months preceding the start of the first period of 2009.

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