Companies in a consolidated group must meet startup requirements

The application of tax incentives intended for startups raises questions when these companies are part of tax consolidation structures. The Dirección General de Tributos (DGT) has specified the necessary conditions for groups of companies to benefit from the reduced tax rate provided for in current regulations.

What the DGT has resolved

The inquiry analyzes whether it is possible to apply the reduced tax rate in consolidated Corporate Tax (Impuesto sobre Sociedades) and whether ENISA certification is necessary for dependent companies within the consolidation perimeter. The criteria establish that, to access the incentives of Law 28/2022, when a company belongs to a group, both the group as a whole and each of the companies that comprise it must meet the requirements established in article 3.1 of said law.

Furthermore, it is confirmed that startup status is proven through the corresponding registration in the competent Mercantile Registry or the Registry of Cooperatives. Therefore, the possibility of applying tax benefits depends on verifying compliance with the legal requirements, either collectively by the group or individually by each constituent company.

What it means for you

If your company is part of a group that consolidates for tax purposes, it is not enough for one of the companies to meet the startup condition to extend that benefit to the entire consolidation perimeter. The regulations require a verification of the requirements of Law 28/2022 that must apply to the group or to each of the companies that compose it.

This scenario implies that the tax consolidation structure must be analyzed in detail to determine whether the startup condition is proven individually or as a group, thereby ensuring that the reduced tax rate is applied in accordance with the law.

What should be done

It is necessary to verify compliance with the requirements of article 3.1 of Law 28/2022 for each entity in the group or for the consolidated group. It must be checked that registration in the Mercantile Registry or the Registry of Cooperatives is the accreditation method used, and the consolidation structure must be evaluated to ensure the correct application of the reduced tax rate in Corporate Tax.