Startups will lose the reduced tax rate if their status expires before year-end
The application of the 15% reduced tax rate for startups requires strict compliance with legal requirements throughout the entire tax period. A recent binding ruling from the Dirección General de Tributos (DGT) has delimited the exact moment when such status must be maintained to access the tax benefit in Corporate Income Tax (Impuesto sobre Sociedades).
What the DGT has ruled
The inquiry asked whether an entity could apply the reduced rate in the 2025 fiscal year if its startup certificate, issued by ENISA, was only valid until December 23, 2025. The advisory body has ruled that it is not possible to apply the 15% rate in that fiscal year.
The criterion is based on the fact that Corporate Income Tax accrues on the last day of the tax period. Therefore, it is the legal situation of the entity on that specific date that determines whether it meets the requirements for the reduced rate. If the startup status expires before December 31, the company will lack the necessary quality at the time the tax accrues.
What this means for you
For companies operating under the startup regime, this criterion implies that it is not enough to hold the status for most of the year. The validity of the certificate must cover, at least, until the close of the fiscal year to ensure the application of the 15% rate in the first period with a positive base and the following three periods.
This scenario directly affects the tax planning of entities whose ENISA certification has an expiration date close to the end of the fiscal year. The loss of status before the accrual date prevents the use of the reduced rate in the current fiscal year, forcing the entity to be taxed at the general rate.
What should be done
It is necessary to monitor the validity dates of the certificates issued by ENISA to avoid surprises in the calculation of Corporate Income Tax. Given the proximity of the expiration of the startup status, the possibility of renewing the certification before the end of the tax period should be assessed. Each situation must be analyzed to determine the impact of the expiration of the status on the annual tax burden.
Frequently asked questions
- What happens if my startup certificate expires on December 20?
- You will not be able to apply the 15% reduced rate in that fiscal year, as the status must be maintained until the last day of the tax period.
- Why is the expiration date of the ENISA certificate important?
- Because Corporate Income Tax accrues on the last day of the fiscal year, and it is that date that validates whether the requirements for the reduced rate are met.