A Royal Decree of 17 September 2005, to clarify the application of the notional interest deduction, was published in the Official Gazette of 3 October 2005. For details of the notional interest deduction
The Decree clarifies the determination of the adjusted equity capital for the first taxable period of newly incorporated companies. For this taxable period, the value of the equity capital at the end of the previous taxable year will be replaced by the value of contributions to equity ca…