If you want to reduce the Corporate tax, we recommend you review the following aspects before the end of the year:

1. If you have credits of any public body, Assess whether to initiate arbitral or judicial proceedings of its existence or amount, to deduct impaired due to insolvency. Compare the costs of the procedure with the tax savings.

2. Remember care expenses to customers and suppliersIncluding the usual Christmas details, they have a yearly deductible limit: 1% of net turnover. The excess will not be deductible from the tax base.

3. Check if you should endow a Capitalization reserve or a Equalization reserve and if you qualify for it. Please read the article with more detailed information.

4. If you perceive dividends investees, check the possibility to meet the requirements to apply the exemption to avoid double taxation:

  • minimum investment of 5% or 20 million.
  • Maintenance of the investment during 1 year. Compliance is accepted even if the term ends after the distribution of dividends.

5. If the company is engaged in the leasing of real estate, including homes, check whether you have met the requirements to pay tax on the Entities regime dedicated to rental housing Corporate Income Tax. If the Tax Agency informs inclusion in the scheme before the end of the year (December commonly 31) may apply in 2015.

6. The companies in which more than half of its assets are not related to business activities or is constituted by values, are considered Patrimoniales entities. Check if the company falls under this definition, because if it does not enjoy the tax benefits of income tax: limitations on compensation loss carryforwards in buying and selling, not applying for benefits for entities of small size, no reduced rate for newly created entities, non-application of the exemption to avoid double taxation on the transfer of its shares, etc.


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Inés Gros

DiG Lawyers

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