Skip to main content
Form 200. Corporate Income Tax Declaration 2018

4.2.19 Keys 00325 and 00326 adjustments for impairment losses on securities representing participation in capital or equity (Art. 13.2 b) LIS)

According to the provisions of letter b) of section 2 of article 13 of the LIS , losses due to impairment of securities representing participation in the capital or equity of entities will not be tax deductible.

For tax periods beginning on or after 1 January 2017, Royal Decree-Law 3/2016 of 2 December 2016, which adopts tax measures aimed at consolidating public finances and other urgent social measures, modifies article 13.2 b) of the LIS.

Although the amendment introduced by RDL 3/2016 maintains the non-deductibility of these impairment losses, it is now regulated in two different articles, the aforementioned article 13.2 b) and the new article 15 k) of the LIS, taking into account compliance with a series of requirements in the tax period in which the impairment is recorded.

Thus, article 13.2 b) of the LIS establishes that losses due to impairment of securities representing participation in the capital or equity of entities will not be deductible when, in the tax period in which the impairment is recorded, any of the following circumstances occur:

  • The requirement established in article 21.1 a) of the LIS is not met. This requirement consists of the percentage of participation, direct or indirect, in the capital or in the equity of the entity being at least 5 percent or that the acquisition value of the participation being greater than 20 million euros. In addition, it is required that the participation must be held uninterruptedly for at least 1 year, and

  • In the case of participation in the capital or equity of entities not resident in Spanish territory, in said tax period the requirement established in article 21.1 b) of the LIS is also met, that is, that the entity has been subject to and not exempt from a foreign tax of an identical or analogous nature to this Tax at a nominal rate of at least 10%.

Therefore, in application of the provisions of article 13.2 b) of the LIS, the taxpayer must include in the key [00325] of increases the amount of losses due to impairment of securities representing participation in the capital or equity of entities accounted for in the tax period subject to declaration, which are not deductible by application of article 13.2 b) of the LIS.

However, in accordance with the provisions of article 20 of the LIS, these impairment losses will be deductible in the tax period in which the participation is transferred or derecognized, provided that the indicated requirements are met during the year prior to the transfer or derecognition of the participation.

In these cases, the taxpayer in the tax period following the accounting of the aforementioned impairment losses that gave rise to a positive adjustment to the accounting result (key [00325]) because they were not tax deductible, must include in key [00326] for decreases, the amount corresponding to said impairment as a result of its reversal.