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Form 200. Corporate Income Tax Declaration 2018

4.2.17 Keys 00415 and 00211 impairment losses of Art. 13.1 LIS and provisions and expenses (Arts. 14.1 and 14.2 LIS) referred to in Art. 11.12 LIS and DT 33ª.1 LIS

Article 11.12 of the LIS regulates a limitation on the integration into the tax base of a series of expenses that were not deductible in the tax period in which they were accounted for by applying the imputation criteria established by the Corporate Tax regulations, and which for that reason, generated deferred tax assets likely to become a payable credit against the Tax Authority.

For these purposes, article 11.12 of the LIS establishes that provisions for impairment of credits or other assets arising from possible insolvencies of debtors not related to the taxpayer, not owed by public law entities and whose deductibility does not occur by application of the provisions of article 13.1.a) of this Law, as well as those derived from the application of sections 1 and 2 of article 14 of this Law, corresponding to provisions or contributions to social security systems and, where appropriate, early retirement, which have generated deferred tax assets, to which the right established in article 130 of this Law applies, will be integrated into the tax base in accordance with the provisions of the Corporate Tax regulations, with the limit of 70 percent of the positive tax base prior to its integration, to the application of the capitalization reserve established in article 25 of this Law and to the compensation of tax bases. negative.

In application of the provisions of article 11.12 of the LIS, a series of adjustments will have to be made that will be included in keys [00415] and [00211] "Impairment losses of art. 13.1 LIS and provisions and expenses (arts. 14.1 and 14.2 LIS) referred to in art. 11.12 and DT 33.1 LIS» on page 12 of form 200:

  • In the [00415] key for increases, the amount of the provisions referred to in article 11.12 of the LIS that are considered accounting expenses in the tax period subject to declaration must be recorded, but which are not tax deductible as provided for in articles 13.1.a), 14.1 and 14.2 of the LIS.

  • When in subsequent tax periods the circumstances set out in articles 13.1.a), 14.1 and 14.2 of the LIS occur for these expenses to be tax deductible, a negative adjustment must be made in key [00211].

These keys must include the provisions referred to in article 11.12 of the LIS, but without taking into account the limit of integration in the taxable base of these expenses established in said article.