Provide for reserves on time
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If your company applies capitalization or leveling reserves, provide for them on time.
In the Corporate Income Tax (CIT) for 2025, companies can compute, among others, the following reductions:
- The capitalization reserve reduction (applicable to all companies), which allows reducing the taxable base between 20 and 30% of the increase in the equity value.
- And the leveling reserve reduction (only for small-sized companies), which allows reducing the taxable base of the year by 10%, with a limit of one million euros.
Therefore, if your company applies any of these incentives, remember that in both cases it is necessary to create an unavailable reserve equal to the reduction applied .
Regarding the capitalization reserve, if your company's fiscal year coincides with the calendar year:
- The reserve corresponding to 2025 must be created within the approval deadline of the annual accounts (generally, by June 30,2026).
- This reserve will be unavailable for your company until December 31,2028 (three years from the close of 2025).
On the other hand, the deadlines applicable to the 2025 CIT leveling reserve are as follows:
- Such reserve must be established when the General Meeting resolves on the allocation of the benefits for 2025, and charged to them (in general, also until June 30,2026). However, if said benefits are insufficient, it can be completed in the following years with the first benefits obtained.
- Your company may not use this reserve until the fiscal year in which its amount is offset by the negative bases obtained or, if such offset does not occur, it may not be used for five years (until December 31,2030).
Contact us: we will advise your company on the existing tax incentives in Corporate Tax and on how to make the most of them.
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