4.2.56 Codes 00340 and 01589 foreign tax borne by the taxpayer, not deductible because it affects income with deduction for double taxation (Art. 31.2 LIS)

Meanwhile, because it affects income integrated into the tax base, obtained and taxed abroad by a tax (accounted as an expense) of an identical or analogous nature to the Corporate Tax, and in relation to said income the taxpayer is a creditor to the deduction to avoid international double taxation established in article 31.2 of the LIS , the amount of tax paid abroad will be included in code [00340], as an increase correction, even when it is not was fully deductible. The part of the amount of the tax paid abroad that is not subject to deduction in the full quota by application of the provisions of section 1 of article 31 of the LIS will be considered a deductible expense, provided that it corresponds to the performance of economic activities abroad.

Meanwhile, because it affects income integrated into the tax base, obtained and taxed abroad by a tax (accounted as an expense) of an identical or analogous nature to the Corporate Tax, and in relation to said income the taxpayer is a creditor to the deduction to avoid international double taxation established in article 31.2 of the LIS, the amount of tax paid abroad will be included in code [00340], as an increase correction, even if it was not fully deductible.

In the increase key [00340] the amount of the foreign tax borne by the taxpayer must be entered, which is not deductible because it affects income with the right to the deduction for double taxation of article 31.2 of the LIS.

In the key [01589] of reductions, the part of the tax paid abroad that has not generated a deduction for double taxation for exceeding the quota that would apply in Spain if the income had been obtained in Spanish territory must be entered, and provided that corresponds to the carrying out of economic activities abroad.