In this article, we address the capitalisation reserve, which is a tax incentive that allows
companies to reduce their tax base if they allocate part of their profits to increasing their own
funds, i.e. their share capital or reserves.
To benefit from this reduction, the company must meet certain conditions, which have been
modified as established in the seventh final provision of Law 7/2024, which has introduced
changes as of 1 January 2025 that seek to optimise this tax incentive.
Firstly, there has been an increase in the percentage reduction from 15% (reduction in force in
2024) to 20%, which is the new percentage included, applicable to the increase in their own
funds. This change reinforces the attractiveness of the capitalisation reserve to improve the
business solvency of Spanish entities.
However, the percentage reduction in the tax base is linked to the increase in the average
workforce of the taxpayer. To show this in a more visual way, it would follow this structure:
– A workforce increase of between 2% and 5% allows for a reduction of 23%.
– For increases of between 5% and 10%, the reduction rises to 26.5%.
– Increases of more than 10% can achieve a reduction of 30%.
In this way, they promote business capitalization, as well as job creation.
Another significant change is the reduction in the maintenance period for the increase in
equity capital. Instead of five years, companies will now only have to maintain the increase for
three years. This adjustment increases flexibility and makes financial planning linked to the
capitalisation reserve more attractive.
The regulations maintain the limit of 20% of the tax base for applying the reduction, with
exceptions for companies whose net income is less than one million euros.
As tax advisors, we understand the complexity of the new provisions and the significant impact
they can have on business management, optimizing tax planning and ensuring maximum use
of the benefits offered.
Carmen Moya López