Incentive Calculation
Regulation: Article 25.1 and 2 LIS; DT43 LIS
a) Reduction of the taxable base
Taxpayers who apply the capitalization reserve will be entitled to a reduction in the taxable base of 20 percent of the amount of increase of its own fundsprovided they meet the required conditions.
However, that percentage can be higher provided that the taxpayer's total average workforce in the tax period has increased with respect to the total average workforce of the immediately preceding tax period, according to the following scale:
| Increase in staff | Percentage reduction |
|---|---|
| ≥ 2% and < 5% | 23% |
| ≥ 5% e ≤10% | 26.50% |
| > 10% | 30% |
This increase in staff must be maintained for a term 3 years from the close of the tax period to which the reduction corresponds.
b) Reduction limit
The reduction of the taxable base may in no case exceed the amount of 20 percent of the positive taxable base of the tax period prior to this reduction, to the integration referred to in article 11.12 of the LIS and to the compensation of negative taxable bases.
This percentage rises to 25 percent in the case of taxpayers whose INCN is less than 1 million euros during the 12 months prior to the date on which the tax period to which this reduction corresponds begins.
c) Insufficiency of the tax base
In the event that the taxable base is insufficient to apply the reduction, the outstanding amounts may be applied in the tax periods ending in the 2 years immediately following the close of the tax period in which the right to the reduction was generated, together with the reduction that may correspond, where applicable, by application of the provisions of this article in the corresponding tax period, and with the limit provided for in the previous paragraph.
Note:
When applying the corresponding reduction to the capitalization reserve, when there are amounts pending application from previous periods together with the amount generated in period itself, the taxpayer may apply them in the order he or she wants , since there is nothing established about whether one or the other has to be applied first. (Resolution of the Central Economic-Administrative Court (TEAC) issued on September 22, 2021, in an extraordinary appeal for the unification of criteria).
Summary table
| Tax period started | Until 31-12-2023 |
Until 31-12-2024 |
From 01-01-2025 |
|---|---|---|---|
| Reduction of Taxable Base | 10% | 15% | 20% (23%, 26.5% or 30% if the average workforce is increased) |
| Reduction Limit | 10% | 10% | 20% (25% if INCN < 1 million) |
| Maintenance period for increase in Equity Funds | 5 years (since the closure of PI to whom the reduction corresponds, unless there are accounting losses) |
3 years (from the closing of the PI to which the reduction corresponds, unless there are accounting losses) |
3 years (from the closing of the PI to which the reduction corresponds, unless there are accounting losses) |