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V3275-18 26 December 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reducción de capital

Equity for capital reductions or distribution of share premium must be based on the last closed financial year

A query was raised regarding which equity figures should be used to calculate the limit on returns on movable capital during capital reductions and the distribution of share premiums. The Directorate General for Taxes (DGT) ruled that the figures from the last financial year closed prior to the transaction must be used, regardless of whether the balance sheet has been formally approved.

The question raised

Whether the equity to be considered in both transactions would be that corresponding to the last closed fiscal year, the last closed and approved fiscal year, or the equity existing at the time the transaction is carried out.

The DGT's ruling

For the reduction of capital and the distribution of the share premium, the equity consists of that from the fiscal year closed immediately prior to the transaction. It is not necessary for the balance sheet to have been approved, nor are the funds existing at the time of the transaction used, unless they coincide with the closing. Allocations to the legal reserve made between the closing and the transaction must be deducted, as well as allocations to the legal reserve made after the acquisition of the shares up to the limit of the unavailable legal reserve.

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