Practical examples

Example 1:

Company "M" is a small entity that pays taxes under the special regime applicable to such entities provided for in articles 101 to 105 of the LIS , whose tax period coincides with the calendar year.

In the 2024 financial year, this company was required to set aside a reserve of 100,000 euros and only set aside the amount of 50,000 euros in that year.

In the Corporate Income Tax return for the year 2024, company "M" should have completed the "Reserve allocation" section of the "Leveling reserve" table on page 20 bis of form 200 as follows:

Subsequently, in the 2025 financial year, company "M" allocated an additional reserve of 25,000 euros corresponding to the amount of the reserve that it was obliged to allocate in the 2024 financial year.

In the Corporate Income Tax return for the year 2025, company "M" must complete the "Reserve allocation" section of the "Leveling reserve" table on page 20 bis of form 200 as follows:

As can be seen in this example, the amount of 100,000 euros to be entered in the column "Reserve amount to be allocated" does not vary in the different corporate tax returns as long as the obligation to allocate the equalisation reserve persists.

Example 2:

Company "A" is a small entity that pays taxes under the special regime applicable to such entities provided for in articles 101 to 105 of the LIS, whose tax period coincides with the calendar year.

Exercise 2024:

Calculation of capitalization and leveling reserves for the 2024 financial year

1. First, company "A" calculates the capitalization reserve in accordance with article 25 of the LIS:

   Total:	300.300	Total:	330.300
   FFPP for the purposes of article 25 as of 01/01/2024		FFPP for the purposes of article 25 to 31/12/2024
   Social capital	300,000	Social capital	300,000
   Voluntary reserves	300	Voluntary reserves	30,300

   According to the above data, the increase in equity (Δ FFPP) is 30,000

   Therefore, the capitalization reserve for the year, as established in Article 25 of the LIS, will be 15% of the increase in the company's equity, with a limit of 10% of the positive taxable base of the tax period prior to this reduction, the integration referred to in section 12 of Article 11 of this Law and the compensation of negative taxable bases:

   • Capitalization reserve = 15% reduction of Δ FFPP = 4,500

   • 10% BI prior to capitalization reserve = 10% 250,000 = 25,000

   • Pending capitalization reserve to be applied = 0

   The requirements for maintaining the increase in equity must be met. In addition, a capitalization reserve of 4,500 must be provided.

2. Regarding the leveling reserve for the 2024 financial year, as established in article 105 of the LIS, it may be reduced by up to 10% of the positive taxable base, with a limit of 1 million euros:

   • Leveling reserve = 10% of positive BI = 10% 247,000 = 24,700

   • Limit = 1,000,000

   The amount of 24,700 will be added to the taxable base of the tax periods ending in the 5 years immediately following the end of the 2024 tax period, provided that company "A" has a negative taxable base, and up to the amount of the same. The remaining amount will be added to the tax base of the tax period corresponding to the date of completion of the aforementioned period.

   A leveling reserve of 24,700 must be established in 2024

   The Corporate Tax settlement for the 2024 financial year is as follows:

   Settlement of IS 2024
   Accounting profit before taxes 2024	250,000
   Differences	0
   BI prior to the reduction of art. 25 and the compensation of negative BI	250,000
   Capitalization reserve (limit 10% x 250,000 = 25,000)	-4,000
   Compensation of negative tax bases from previous periods	0
   Taxable base	246,000
   Leveling Pool (Limit 1,000,000)	-24.700
   BI after leveling reservation	221,300
   Tax rate	25%
   Total tax liability	55,325
   Tax deductions and bonuses	0
   Net share	55,325
   Withholdings and prepayments	-5.000
   Due tax	50.325

Exercise 2025:

Calculation of capitalization and leveling reserves for fiscal year 2025

1. First, company "A" calculates the capitalization reserve in accordance with article 25 of the LIS:

   Total:	330.300	Total:	364,300
   FFPP for the purposes of article 25 as of 01/01/2025		FFPP for the purposes of article 25 to 31/12/2025
   Social capital	300,000	Social capital	300,000
   Voluntary reserves	30,300	Voluntary reserves	60,300
   ---	---	Capitalisation reserve	4.000

   According to the above data, the increase in equity (Δ FFPP) is 34,000.

   Furthermore, there has been no increase in the average total workforce compared to the average total workforce of the immediately preceding tax period.

   Therefore, the capitalization reserve for the year, as established in Article 25 of the LIS, will be 20% of the increase in the company's equity:

   • Capitalization reserve = 20% reduction of Δ FFPP = 6,800

   He INCN If the amount of the previous period exceeds 1 million euros, the company may apply the capitalization reserve up to a limit of 20% of the positive taxable base of the tax period before this reduction, the integration provided for in article 11.12 of the LIS and the compensation of negative taxable bases

   • Limit 20% BI prior to capitalization reserve = 0

   • Capitalization reserve pending application during the next two years = 6,800

2. Regarding the equalization reserve for the 2025 financial year, given that the taxable base for the period is -20,000, the amounts reduced by the equalization reserve for 2024 must be added up to that amount:

   • Leveling reserve addition 2024 = 20,000

   • Leveling reserve pending addition = 24,700 - 20,000 = 4,700

   The settlement of Corporate Income Tax for the 2025 financial year is as follows:

   IS Settlement 2025
   Accounting result before taxes 2025	-20,000
   Differences	0
   BI prior to the reduction of art. 25 and the compensation of negative BI	-20,000
   Capitalization reserve (limit 0)	0
   Compensation of negative tax bases from previous periods	0
   Taxable base	-20,000
   Leveling reserve (negative BI limit: -20,000)	20,000
   BI after leveling reservation	0
   Tax rate	24%
   Total tax liability	0
   Tax deductions and bonuses	0
   Net share	0
   Withholdings and prepayments	-5.000
   Due tax	-5.000

Completion of the capitalization and leveling reserve tables in form 200 for the years 2024 and 2025

• Corporate Tax Return 2024

• Corporate Income Tax Return 2025