11.2.2.7 Leveling reserve converted into quotas (only entities of art. 101 LIS)

Keys 01285 and 01286 will be completed only when the reporting entity is a cooperative society and chooses to apply the leveling reserve provided for in article 105 of the LIS for those entities that meet the conditions of article 101 of the LIS and that apply the tax rate provided for in the first paragraph of section 1 of article 29 of the LIS.

These keys will be completed by those cooperative societies that choose to apply the tax incentive of the equalization reserve established in article 105 of the LIS, provided that they comply with the conditions established in article 101 of the LIS and apply the tax rate provided for in the first paragraph of section 1 of article 29 of this Law.

Article 29.2 of the LIS establishes that fiscally protected cooperative societies will pay 20% tax on cooperative results and 25% tax on non-cooperative results; and credit cooperatives and rural banks for the general cooperative results of 25% and for the non-cooperative results of 30%.

According to the provisions of article 29.2 of the LIS, a fiscally protected cooperative pays corporate tax at a different rate than the general rate, and therefore cannot apply the equalization reserve (nor for non-cooperative results).

Consequently, only cooperative societies that do not have tax-protected status can apply for this tax benefit.

Therefore, in the tax periods in which these cooperative societies choose to apply said tax benefit, they must make a negative adjustment (key [01286] for decreases) in the previous positive integral quota, taking into account the limits mentioned in article 105 of the LIS.

Likewise, cooperative societies that have chosen to apply said tax benefit will be obliged to reverse said adjustment (key [01285] for increases) in the tax periods that conclude in the five years immediately following the end of said period, as they generate negative prior integral quota and up to the amount thereof.