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Form 200. Corporate Income Tax Declaration 2019

4.2.4 Codes 00225 and 00226 negative income (Articles 11.9 and 11.10 LIS)

These keys will contain the differences in temporary imputation derived from the application of article 11.9 and 10 of the LIS :

Article 11.9 of the LIS establishes that negative income generated by the transfer of tangible fixed assets, real estate investments, intangible fixed assets and debt securities when the purchaser is an entity of the same group of companies according to the criteria established in article 42 of the Commercial Code, regardless of residence and the obligation to prepare consolidated annual accounts regulated by article 11.9 of the LIS. Pursuant to this article, the negative income generated in these operations will be imputed in the tax period in which said assets are written off the balance sheet of the acquiring entity, are transferred to third parties outside the aforementioned group of companies, or when the transferring entity or the acquiring entity cease to be part of the same. However, in the case of amortizable assets, negative income will be integrated, prior to said circumstances, in the tax periods that remain of the useful life of the transferred assets, depending on the amortization method used with respect to the aforementioned assets.

Article of the LIS establishes that negative income derived from the transfer of securities representing participation in the capital or equity of entities, when the purchaser is an entity of the same group of companies according to the criteria established in article of the Commercial Code, regardless of residence and the obligation to prepare consolidated annual accounts, will be imputed in the tax period in which said assets are transferred to third parties outside the aforementioned group of companies, or when the transferring entity or the purchaser cease to be part of it, reduced by the amount of positive income obtained in said transfer to third parties, provided that, with respect to the transferred securities, the following circumstances occur:

  • that, at no time during the year prior to the day on which the transfer occurs, the requirement established in article 21.1 a) of the LIS is met, and

  • that, in the case of participation in the capital or equity of entities not resident in Spanish territory, in the tax period in which the transfer occurs, the requirement established in article 21.1 b) of the LIS is met.

The provisions of article 11.10 of the LIS shall apply to the case of the transfer of shares in a temporary joint venture or in forms of collaboration similar to these located abroad, but not to the extinction of the participating entity, unless this is the result of a restructuring operation or the activity continues to be carried out under any other legal form.

Therefore, in the tax period in which the transfer of the assets or securities referred to in article 11.9 and 10 of the LIS is carried out, the transferring entity must record in the [00225] key for increases and, where applicable, in its corresponding breakdown boxes, the amount of negative income generated by said transfer that is not deductible for tax purposes. When in subsequent tax periods, the acquiring entity, with respect to said assets, writes them off the balance sheet of the acquiring entity, transfers them to third parties outside the aforementioned group of companies, or when the transferring entity or the acquiring entity ceases to be part of the same, the acquiring entity will integrate the amount of said negative income into its tax base by means of a negative adjustment that it will include in key [00226] for decreases and, where applicable, in its corresponding breakdown boxes.