The deduction for retained and reinvested profits is a scheme that allows the deduction for retained and reinvested profits. It is an incentive measure for SMEs that allows retained profits that are reinvested in relevant applications to be deducted from corporate income tax.
Learn about the incentive amount, who are the beneficiaries and the requirements.
Deduction to the collection, in tax periods beginning on or after 1 January 2014, of up to 10% of retained profits that are reinvested in applications considered relevant. For micro and small companies, the deduction for 2018 and following years may be made over a 3-year period and may be up to 50% of the taxable income.
For the remaining companies, the deduction can be made over a period of 2 years and may be up to 25% of the taxable income. The maximum amount of retained and reinvested profits, in each tax period, is of €7,500,000 per taxpayer.
IRC taxpayers who cumulatively meet the following conditions may benefit from this regime:
Tangible fixed assets acquired in new condition are considered as relevant applications, with the exception of: