Doctrine by topic · DGT Observatory

Increase in Equity: 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 31 rulings · 2015–2026

Current position

The increase in equity for the reduction under Article 25 of the LIS (Corporate Income Tax Law) excludes contributions from partners and capital increases. The maintenance of the increase is evaluated globally on the total amount, allowing for the disposal of specific items as long as the global balance is preserved. Family-owned companies may apply the reduction if they meet the requirements of the LIS and the turnover limits established.

The DGT's position remains constant regarding the exclusion of partner contributions (V1772-15, V2491-22) and in the interpretation of the maintenance of the increase. The doctrine has specified that said maintenance is global and not by individual items (V0749-22, V2446-22), also allowing for the partial application of the reduction (V1765-19).

Turning points

  1. V1765-19

    Allows the partial application of the reduction as long as the chosen increase is maintained during the 5-year period.

  2. V0749-22

    Establishes that the maintenance of the increase refers to the global amount and not to each of the items that compose it.

Analysis based on 26 of 31 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
V0997-26 6 May 2026

25% capitalisation reserve limit applicable if turnover below €1m

SG de Impuestos sobre las Personas Jurídicas
reserva de capitalizaciónincremento de fondos propioscifra de negociosbase imponibleentidad patrimonial LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11.12LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 25
Affects CompanyExpat · Non-residentIndividual
V2451-22 29 Nov 2022

10% reduction in taxable base applicable for increase in equity

SG de Impuestos sobre las Personas Jurídicas
reserva de capitalizaciónfondos propiosbase imponibleincremento de fondos propiosperiodo impositivo LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 25LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 29.1
Affects CompanyExpat · Non-residentIndividual
V0745-22 5 Apr 2022

Failure to maintain equity requires regularisation of the capitalisation reserve

SG de Impuestos sobre las Personas Jurídicas
reserva de capitalizaciónfondos propiosincremento de fondos propiosbase imponibleregularización LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 25LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 25.1.a
Affects CompanyExpat · Non-residentIndividual
V1956-21 21 Jun 2021

The distribution of dividends may affect compliance with the maintenance of equity for the capitalization reserve reduction

SG de Impuestos sobre las Personas Jurídicas
reducción por reserva de capitalizaciónincremento de fondos propiosmantenimiento de fondos propiosreservas voluntariasdistribución de dividendos LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 25.1.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 25.4
Affects CompanyExpat · Non-residentIndividual
V1854-19 16 Jul 2019

Capitalisation reserve counts towards the calculation of equity increases

SG de Impuestos sobre las Personas Jurídicas
reserva de capitalizaciónfondos propiosincremento de fondos propiosbase imponiblereducción LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11.12LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 25.1.a
Affects CompanyExpat · Non-residentIndividual
V1765-19 10 Jul 2019

Capitalisation reserve reduction may be applied to only part of the increase in equity

SG de Impuestos sobre las Personas Jurídicas
reserva de capitalizaciónincremento de fondos propiosreducción de la base imponiblemantenimiento de fondos propiosdistribución de resultados LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 25LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 25.2
Affects CompanyExpat · Non-residentIndividual

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