Capitalisation reserve

With effect for tax periods beginning on or after 1 January 2025, section 1 of article 25 of the LIS by section Two of the Eighth Final Provision of Law 7/2024, in the following terms:

• Increase in the percentage of reduction

  In general, for taxpayers who pay tax at the rate provided for in sections 1 to 6 of the LIS, increases the applicable percentage for determining the reduction in the taxable base as a capitalization reserve, 15 to 20 percent of the increase of their own funds, provided they meet the required conditions.

  Notwithstanding the foregoing, said percentage can be higher provided that the taxpayer's average total workforce in the tax period has increased compared to the average total workforce of the immediately preceding tax period, according to the following scale:

  Increase in staff	Percentage reduction
  ≥ 2% and < 5%	23%
  ≥ 5% and ≤ 10%	26.50%
  > 10%	30%

  This increase in staff must be maintained for a period of 3 years from the closing of the tax period to which the reduction corresponds.

• Limit to applicable reduction

  It rises The limit on the amount of the reduction in the taxable base as a capitalization reserve is differentiated according to the net amount of turnover. (INCN) from the taxpayer:

  • He 20 percent of the positive taxable base of the tax period prior to this reduction, to the integration referred to in section 12 of article 11 of the LIS, and to the compensation of negative taxable bases.

  • He 25 percent of the positive taxable base of the tax period prior to this reduction, to the integration referred to in section 12 of article 11 of the LIS, and to the compensation of negative taxable bases, when dealing with 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.

You can consult the particularities of this tax incentive in Chapter 5 of this Practical Manual.