Subject

Regulations: Art. 101 LIS

In general

For the purposes of applying the tax benefits discussed in this section, companies are considered small in fiscal year 2019 to be those in which the net amount of turnover in the immediately preceding tax period (fiscal year 2018) was less than 10 million euros, regardless of the net amount of turnover in the fiscal year itself.

Special rules

• When the company is newly created, the net amount of the turnover will refer to the first tax period in which the activity is actually carried out, increasing said figure proportionally to the year if the period of exercise has been less than 12 months.
• If the immediately preceding tax period had a duration of less than a year, or the activity had been carried out over a period of time that was also shorter, the net amount of the turnover will be increased proportionally to the year.
• Group of companies: In the event that a natural person, alone or jointly with his or her spouse or other natural persons related by direct or collateral ties, by blood or marriage, up to the second degree inclusive, is related to the entities of which they are partners in any of the cases referred to in article 42 of the Commercial Code, regardless of the residence of the entities and the obligation to prepare consolidated annual accounts, the net amount of the turnover shall refer to the set of entities or companies belonging to said group, taking into account the eliminations and additions that correspond by application of the accounting regulations.
• In the event that the same natural person carries out several economic activities, the net amount of the turnover will refer to the set of all those carried out.
• Entities under income allocation regime: The net amount of the turnover will be determined taking into account exclusively the set of economic activities carried out by said entities.