26.07.2021

ACE - Expansion of "innovative" equity promotion

For the year 2021, the ACE capital incentive will be increased by using the 15% imputed interest rate (instead of the current 1.3%) for capital improvements such as cash deposits and contributions or the allocation of earnings to reserves. You can also claim the benefit in the form of a tax credit, which can be used from the date of payment or termination of earnings allocated to reserves. However, this second method is not recommended, as in 2021 there may be a risk that the amount will be reduced due to capital reductions (e.g., losses), which would result in the return of some of the tax credit already offset, with penalties and interest likely to apply.