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V1952-21 21 June 2021 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · reserva de capitalización

The approval of dividends on account of the current financial year does not reduce the capitalization reserve base

A company inquired whether approving dividends charged to the current financial year affected the calculation of the capitalization reserve reduction. The DGT responds that it has no impact on the increase in equity for the financial year in which it is approved.

The question raised

Question posed: Whether it is appropriate to consider that the approval of a dividend on account of the 2021 financial year, regardless of when the payment is made, has no impact on the increase in equity established by Article 25 of Law 27/2014, of November 27, on Corporate Income Tax, for the calculation of the capitalization reserve for the financial year in which it is approved.

The DGT's ruling

The increase in equity is determined by the difference between the equity at the close and at the beginning of the financial year, excluding the results of the current financial year and those of the previous one. Since the results of the financial year are not taken into account for this calculation, the distribution of dividends on account of said results does not affect the reduction base of the capitalization reserve for the same financial year. However, said distribution will affect the increase in equity for the following tax period.

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