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V2861-14 22 October 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · tipo de gravamen reducido

Reduced Corporate Tax rate applicable if turnover and average headcount requirements are met

A company incorporated in 2011 has enquired whether it can apply the reduced tax rate based on employment maintenance. The Directorate General for Taxes (DGT) has ruled that, as a newly established entity, its reference headcount is zero; therefore, it may apply the scale provided its average headcount is at least one employee.

The question raised

Whether the consulting entity could apply the reduced tax rate for the maintenance and creation of employment pursuant to the twelfth additional provision of the recast text of the Corporate Income Tax Law, approved by Royal Legislative Decree 4/2004, of March 5.

The DGT's ruling

To apply the reduced scale, the average workforce must be equal to or greater than one unit and not lower than that of the twelve months preceding the first tax period since 2009. In companies incorporated after that date, the reference workforce is zero. The calculation of the average workforce considers employees, weighting their working hours and period of employment.

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