Issues to consider when settling the Tax in 2025

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% of the increase of their own funds, provided they meet the required conditions.

  Notwithstanding the foregoing, This percentage may be higher provided that the average staff total taxpayer 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% and ≤ 10%	26.50%
  > 10%	30%

  This increase in staff will have to to remain in effect 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 and is differentiated based on the net amount of turnover (INCN) of the taxpayer:

  • 20% 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.

  • 25% 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.

• Summary table

  Tax period started	Until 31-12-2023	Until 31-12-2024	As of 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 (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)	3 years (from the closing of the PI to which the reduction corresponds, unless there are accounting losses)