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Form 200. Corporate Income Tax Declaration 2018

4.3.3.3 Breakdown of negative bases: Detail of the compensation of negative tax bases

For tax periods beginning on or after January 1, 2015, taxpayers will be able to offset negative tax bases with positive income from subsequent tax periods without a time limit (therefore eliminating the maximum period of 18 years established by the previous regulations governing Corporate Tax).

However, negative tax bases may not be offset when the following circumstances occur:

  1. The majority of the share capital or the rights to participate in the results of the entity that have been acquired by a person or entity or by a group of related persons or entities, after the conclusion of the tax period to which the tax base corresponds negative.

  2. The persons or entities referred to in the previous paragraph would have had a participation of less than 25 percent at the time of the conclusion of the tax period to which the negative tax base corresponds.

  3. The acquired company finds itself in one of the following circumstances:

    1. Had not been carrying out any economic activity within the 3 months prior to the acquisition;

    2. Carry out an economic activity in the 2 years following the acquisition that is different or additional to that carried out previously, which will determine, in itself, a net amount of the turnover in those subsequent years greater than 50 percent of the average amount of the turnover of the entity corresponding to the previous 2 years. A different or additional activity is deemed one that is assigned a different group to the previous one, according to the National Classification of Economic Activities.

    3. It is a heritage entity in the terms established in section 2 of article 5 of this Law.

    4. The entity has been removed from the entity index by application of the provisions of letter b) of section 1 of article 119 of this Law.

On the other hand, section 5 of article 26 of the LIS establishes that: The right of the Administration to initiate the procedure for verifying the negative tax bases compensated or pending compensation will expire after 10 years, counting from the day following the day on which the established period for submitting the declaration or self-assessment corresponding to the tax period ends. in which the right to compensation was generated.

After this period, the taxpayer must prove the negative tax bases whose compensation is sought by displaying the liquidation or self-assessment and the accounting, with proof of their deposit during the aforementioned period in the Commercial Registry.

The amount to be reflected in the key [00547] will be the result of completing the section "Details of negative tax bases" on page 15 of form 200.

The entities covered by the special tax regime SOCIMI and the entities that apply the tax regime of the exit of the special tax regime SOCIMI (section 2 of article 12 of Law 11/2009), may carry out the compensation of negative tax bases in accordance with the specific rules applicable to your regime.

IMPORTANT:

Cooperative societies will not be able to record any item in this field as compensation for losses, since the specific tax regime of such entities replaces said compensation of negative bases with that of negative quotas.

The compensation of the aforementioned negative installments will be carried out using the field [00561] following the instructions indicated in the corresponding help of the “Settlement (I) and (II) part 2” screen.

Note: Note common to keys [00550] and [00547]

If the amount of key [00550] is zero or negative, in no case may any amount of the negative tax bases from previous tax periods be offset, and the figure zero ("0") must be entered in key [00547].

If the amount of key [00550] is positive, the amount of key [00547] will be limited to that of key [00550]. (1) , that is, the application of key [00547] cannot result in a negative amount in key [00552] (tax base) in any case.

In relation to SOCIMI entities, entities that opt for the special SOCIMI regime that pay taxes at the 0% rate, if negative tax bases are generated, the base compensation mechanism provided for in article 26 of the LIS.This indication is only applicable to the tax base to which the 0% rate applies. If there were positive income that was taxed in accordance with the general regime and at the general tax rate, the base compensation mechanism provided for in article 26 of the LIS would apply to said income.

Assumption of the decreases in the result of the profit and loss account related to the concepts "Mining and hydrocarbons, depletion factor" (key [00382])], "Reserve for investments in the Canary Islands" (key [00404] and "Application of limit of article 11.12 LIS to losses due to impairment of article 13.1 LIS and provisions and expenses article 14.1. and 14.2) LIS" (key [00416]).

In calculating the amount of the key [00550], ([00550] = [00501] + [00417] - [00418]) outlined above in relation to said key, the following must be taken into account in relation to the keys [00382 ] and [00404]:

If of the operation: key [00501] + (keys [00355] to [00413]) (2) - (keys [00356] to [00414]) (2) , excluding from these the keys [00382] and [00404] results in zero or a negative amount, in no case will the application of the decreases to the result of the profit and loss account referred to in the keys [00382] and [ 00404]; That is, in the aforementioned calculation of the key [00550] the amounts of the keys [00382] and [00404] will not be computed to obtain the amount of the key [00418]. And in this case, negative tax bases from previous tax periods cannot be offset, so the figure zero ("0") must be entered in the key [00547].

If, on the contrary, a positive amount is obtained from such operation, the reductions will be applied to the result of the profit and loss account referred to in keys [00382] and/or [00404] for the purposes of obtaining the amount corresponding to the code [00550], but taking into account that the application of said reductions (of the codes [00382] and [00404]), individually considered and/or as a whole, may not give rise to any case to a negative tax base (key [00552]).

(1) For entities subject to tonnage-based taxation, the limit is different (see case).(Back)

(2) Keys to the Increases and Decreases columns, respectively, of the section “Details of the corrections to the result of the profit and loss account (excluding the correction of IS )”, on pages 12 and 13 of model 200. (Back)