7.2.4 Breakdown of deductions for international double taxation RDLeg. 4/2004

General considerations

This section must include deductions to avoid international double taxation generated in the years 2005 to 2014 and which could or could be transferred to future tax periods.

Structure of this section

Column "pending deduction" . If it is a deduction generated in any of the tax periods prior to the one being settled and started in 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013 or 2014 of block « DI international previous years » , the balance corresponding to the deduction that was pending application at the beginning of the tax period being declared will be recorded in each key in this column.

However, if the deduction has been generated in accordance with the provisions of letter b) of section 1 of article 31 of the LIS , it must be taken into account that said balance must be relative to the tax rate of the tax period in which it was generated.

Column « tax rate generation period » aims to record the tax rate that the taxpayer, beneficiary of the deduction, paid in the tax period in which it was generated.

In column « tax rate 2018» the tax rate is recorded (The 2018 tax rate will be equal to the quotient of the division: amount in box [00562] / amount in box [00552]) for which the reporting taxpayer pays taxes in the tax period beginning within the year subject to the declaration.

In column « 2018 pending deduction » the amounts referring to pending deductions from previous years will be recorded.

In the case of deductions generated in accordance with article 31.1.b) of the LIS and the tax rate applicable by the taxpayer benefiting from the deduction in the tax period in which it was generated is different from the tax rate by which he/she pays taxes in the tax period subject to liquidation, the amount to be entered in this column will be the result of multiplying the amount in the corresponding box of the "Pending deduction" column by the fraction: 2018 tax rate/generation period tax rate.

As regards the type of tax to be considered, the provisions of section 4 of the twenty-third transitional provision of the LIS must be taken into account, according to which the amount of the deductions established in this Transitional Provision and in articles 30, 31.1.b) and 32.3 of the RDLeg . 4/2004 will be determined taking into account the tax rate in force in the tax period in which it is applied.

In any case of generation of the deduction in accordance with article 31.1.a) of the LIS, or in the case of having been generated in accordance with article 31.1.b) of the LIS only when the tax rate of the tax period of generation is equal to that of the tax period to be settled, the amount entered in column « Pending deduction » will be equal to that entered in the corresponding box in the column "2018 pending deduction".

Column "to applied in this settlement" aims to record the part (or all, if applicable) of the corresponding amount of the column "2018 pending deduction" that is applied in the settlement of the tax period subject to settlement.

In this column, it should be noted that the application of this deduction is limited to the amount of the full quota that appears in code [00562] on page 14 of form 200.

For these purposes, according to the provisions of section 2 of the Fifteenth Additional Provision of the LIS, in periods starting on or after January 1, 2016, for taxpayers whose net turnover is at least 20 million euros during the 12 months prior to the date on which the tax period begins, this amount may not exceed 50 percent of the taxpayer's total tax.

Column “p pending application future periods” will record the portion of the deduction corresponding to the “2018 pending deduction” column that was not included in the corresponding box of the following column, that is, because it has not been applied in the settlement of the tax period being declared, it remains pending application in subsequent tax periods.