Practical examples

Example

How to calculate and declare the capitalization reserve in form 200

Exercise 2024

The composition of equity in the 2024 financial year of Company "A", whose tax period coincides with the calendar year, is as follows:

Equity of company "A" as of 01/01/2024		Equity of company "A" as of 12/31/2024
Social capital	100,000	Social capital	100,000
Legal reserve	7.000	Legal reserve	10,000
Statutory reservations	5,000	Statutory reservations	12,000
Voluntary reserves	3,000	Voluntary reserves	23,000
Financial year 2023 results	30,000	---	---

Other data:
INCN from the previous period: < 1 million euros
Result of the profit and loss account of ES: 100,000
It makes no difference between accounting profit and taxable profit
The average number of employees has not increased.
Withholdings: 4.000
Tax rate: 25%

Calculation of the capitalization reserve for the year 2024

FP for the purposes of Article 25 LIS as of 01/01/2024		FP for the purposes of article 25 LIS as of 31/12/2024
Total:	103,000	Total:	123,000
Social capital	100,000	Social capital	100,000
Voluntary reserves	3,000	Voluntary reserves	23,000

According to this table, the increase in equity (Δ FP) is 20,000 (123,000 - 103,000)

Therefore, the entity may apply, as a capitalization reserve, a 15% reduction in the taxable base, with the limit of 10% of the positive taxable base of the tax period before this reduction, of the integration provided for in article 11.12 of the LIS and the compensation of negative tax bases:

Capitalization reserve = 15% reduction of Δ FP (20,000) = 3,000
10% BI prior to the capitalization reserve = 10% 100,000 = 10,000
Pending capitalization reserve to be applied = 0

In addition, it will be necessary to comply with the requirements for maintaining the increase in equity and to provide a capitalization reserve for the amount of the reduction made, that is, 3,000.

Corporate Income Tax Settlement for the 2024 Financial Year

Settlement of IS 2024
Accounting profit before taxes 2024	100,000
Differences	0
BI prior to the reduction of art. 25 LIS and the compensation of negative BI	100,000
Capitalization reserve (limit 10% x 100,000 = 10,000)	-3.000
Compensation of negative tax bases from previous periods	0
Taxable base	97,000
Leveling Pool (Limit 1,000,000)	0
BI after leveling reservation	97,000
Tax rate	25%
Total tax liability	24.250
Tax deductions and bonuses	0
Net share	24.250
Withholdings and prepayments	-4,000
Due tax	20,250

Completion of form 200 for the 2024 fiscal year (page 20 bis)

Exercise generation	Right to reduce the BI generated in the period / pending of apply at the beginning of the period		BI reduction applied		Pending BI reduction of to be applied in future periods
2024	3,000		3,000		0
Capitalization reserve provided in the year					3,000

Exercise 2025

The composition of equity in the 2025 financial year of Company "A" is as follows:

Equity of company "A" as of 01/01/2025		Equity of company "A" as of 31/12/2025
Social capital	100,000	Social capital	100,000
Legal reserve	10,000	Legal reserve	10,000
Statutory reservations	12,000	Statutory reservations	20,000
Voluntary reserves	23,000	Capitalisation reserve	3,000
Result of the 2024 financial year	100,000	Voluntary reserves	53,000

Other data:
INCN of the previous period: < 1 million euros
2025 result of the IS profit and loss account: 150,000
It makes no difference between accounting profit and taxable profit
Increase in the average total workforce compared to the average total workforce of the immediately preceding tax period: 3%
Withholdings: 5,000
Tax rate: 21% (BI up to 50,000) and 22% (Rest BI)

Calculation of the capitalization reserve for the year 2025

FP for the purposes of Article 25 LIS as of 01/01/2025		FP for the purposes of Article 25 LIS as of 31/12/2025
Total:	123,000	Total:	156,000
Social capital	100,000	Social capital	100,000
Voluntary reserves	23,000	Voluntary reserves	53,000
---	---	Capitalisation reserve	3,000

According to this table, the increase in equity (Δ FP) is 33,000 (156,000-123,000).

Furthermore, the increase in the average total workforce compared to the average total workforce of the immediately preceding tax period is 3%.

Therefore, the entity may apply, as a capitalization reserve, an increased reduction percentage of 23% in the taxable base:

Capitalization reserve = 23% reduction of Δ FP (33,000) = 7,590

The net cash conversion (NCC) of the previous period is less than 1 million euros, so the limit of 20% of the taxable base that the capitalization reserve must respect can be raised to 25% 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 the compensation of negative tax bases:

25% BI prior to the capitalization reserve = 25% 100,000 = 25,000
Pending capitalization reserve to be applied = 0

In addition, it will be necessary to comply with the requirements for maintaining the increase in equity and to provide a capitalization reserve for the amount of the reduction made, that is, 7,590.

Corporate Income Tax Settlement for the 2025 Financial Year

Full fee 30,830

IS Settlement 2025
Accounting result before taxes 2025	150,000
Differences	0
BI prior to the reduction of art. 25 LIS and the compensation of negative BI	150,000
Capitalization reserve (limit 25% x 100,000 = 25,000)	-7.590
Compensation of negative tax bases from previous periods	0
Taxable base	142,410
Leveling Pool (Limit 1,000,000)	0
BI after leveling reservation	142,410
Tax rate	21% (BI up to 50,000)
	22% (Rest BI)
Tax deductions and bonuses	0
Net share	30,830
Withholdings and prepayments	-5.000
Due tax	25.830

Completion of form 200 for the 2025 fiscal year (page 20 bis)

Exercise generation	Right to reduce the BI generated in the period / pending of apply at the beginning of the period	BI reduction applied	Pending BI reduction of to be applied in future periods
2025	7,590	7,590	0
Capitalization reserve provided in the year			7,590
Percentage increase in the average total workforce			3%
If it is an entity whose net turnover during the 12 months prior to the date on which the tax period begins If the amount to which this reduction applies is less than 1 million euros, please mark this box with an X.			X

Other examples

You can consult several practical scenarios Regarding the method of calculating the capitalization reserve together with the leveling reserve, in the section dedicated to the special regime of small-sized entities in Chapter 10 "Special tax regimes (II)".