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Small-Sized Enterprises: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 8 rulings · 2014–2021

Current position

Small-sized enterprises must meet the turnover threshold of less than 10 million euros pursuant to Article 108 of the TRLIS. To access specific incentives, the development of a habitual and continuous economic activity is required, which implies assuming risks and benefits. Compliance with employment or asset maintenance requirements is necessary for certain specific tax benefits.

The DGT's position remains stable regarding the definition of small-sized enterprise requirements, focusing on the turnover threshold. Rulings have clarified the application of this concept in relation to the limitation of depreciation and the determination of individual economic activity versus coordination groups. No doctrinal changes are observed, but rather constant applications of Article 108 of the TRLIS.

Turning points

  1. V2613-14

    Clarifies that the limitation on depreciation of fixed assets only affects entities that do not meet the small-sized enterprise requirements, regardless of whether they apply the reduced rate.

  2. V2620-16

    Establishes that the economic activity for determining small-sized enterprise status is analyzed individually for each entity within a coordination group, rather than jointly.

Analysis based on 8 of 8 rulings with a stated position. Updated 2 October 2026.

Rulings on this topic

8
V2104-16 13 May 2016

Tax rate for small companies is 25% for the base from 0 to 300,000 euros

SG de Impuestos sobre las Personas Jurídicas
empresas de reducida dimensiónentidades de nueva creaciónbase imponibletipo impositivopersonas vinculadas TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 114TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 108
Affects CompanyExpat · Non-residentIndividual
V0154-15 19 Jan 2015

Depreciation limits do not apply if turnover is below 10 million euros

SG de Impuestos sobre las Personas Jurídicas
amortización fiscalmente deduciblecifra de negociosempresas de reducida dimensióninmovilizado materialinversiones inmobiliarias Ley 16/2012TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 11
Affects CompanyExpat · Non-residentIndividual
V3002-14 5 Nov 2014

Small business regime may apply if risks and benefits of hotel operations are assumed

SG de Impuestos sobre las Personas Jurídicas
actividad económicaempresas de reducida dimensiónriesgos y beneficioscifra de negociosexplotación hotelera TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 108TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 114
Affects CompanyExpat · Non-residentIndividual
V2613-14 6 Oct 2014

Depreciation limits do not apply if turnover is below 10 million euros

SG de Impuestos sobre las Personas Jurídicas
amortización contableinmovilizado materialinversiones inmobiliariascifra de negociosempresas de reducida dimensión Ley 16/2012TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 108.1
Affects CompanyExpat · Non-residentIndividual

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