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Practical Handbook for Companies 2021

Equalisation reserve

Regulation:Article 105 LIS

Entities that meet the requirements set out in Article 101 of the Corporation Tax Law to be considered small companies during the tax period and apply the tax rate provided for in the first paragraph of Article 29.1 of the Corporation Tax Law, may apply the tax incentive in relation to the equalisation reserve, whereby they may reduce their positive taxable base by up to 10%.

You can consult the particularities of the application of the levelling reserve, as well as its completion in form 200, in Chapter 10 in the section dedicated to small entities.