Doctrine by topic · DGT Observatory

Maintenance of 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 9 rulings · 2018–2026

Current position

The maintenance of the increase in equity is assessed globally and not by individual line items. To meet the requirement, the difference between the equity at the close and at the beginning of each financial year (excluding results from the current and previous financial years) must be equal to or greater than the increase that originated the reduction. Contributions from partners are not included in this calculation; therefore, the return of contributions does not affect the maintenance.

The DGT's position has remained constant at its core, repeatedly confirming that maintenance is global and not by line items. Throughout the rulings, technical aspects have been specified, such as the inclusion of the capitalization reserve and the exclusion of partner contributions in the calculation of the increase.

Turning points

  1. V1765-19

    Allows the partial application of the reduction if an increase in equity lower than the legal maximum is chosen, provided that said amount is maintained.

  2. V1957-21

    Clarifies that the capitalization reserve provided for under Article 25 of the Law on Corporate Income Tax (LIS) is included in the calculation of the increase and its maintenance.

  3. V0327-24

    Establishes that the capital reduction due to the return of contributions does not affect the maintenance, as partner contributions are not included in the initial increase.

Analysis based on 8 of 9 rulings with a stated position. Updated 30 September 2026.

Rulings on this topic

9
V0391-26 25 Feb 2026

Share buyback and amortisation do not affect capital reserve requirement

SG de Impuestos sobre las Personas Jurídicas
reserva de capitalizaciónfondos propiosacciones propiasreducción de capitalmantenimiento de fondos propios LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 25.1.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 25.2.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
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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