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Form 200. Corporate Income Tax Declaration 2019

4.2.16 Keys 00321 and 00322 impairment losses of article 13.1 LIS not affected by article 11.12 LIS or by DT 33ª.1 LIS

When there is a risk in the collection of a certain debt, entities are obliged to set aside a provision for debtor insolvency.

However, from a tax point of view, article 13.1 of the LIS establishes that losses due to impairment of credits arising from possible insolvencies of debtors will be deductible when at the time of the tax accrual any of the following circumstances occur:

  1. That six months has passed since the obligation fell due.

  2. That the debtor is declared to be in bankruptcy proceedings.

  3. That the debtor is being tried for asset stripping.

  4. That the obligations have been claimed by the courts or are in litigation or arbitration proceedings, the solution of which depends on their collection.

However, even if the above circumstances apply, the following will not be tax deductible:

  1. Those corresponding to credits owed by public law entities, except when they are the subject of an arbitration or judicial procedure that deals with their existence or amount.

  2. Those corresponding to credits owed by related persons or entities, unless they are in a situation of bankruptcy and the liquidation phase has been opened by the judge, in the terms established in Law 22/2003, of July 9, Bankruptcy.

  3. Those corresponding to global estimates of the risk of insolvency of clients and debtors.

Therefore, the taxpayer must include in the [00321] key for increases and, where applicable, in the corresponding breakdown boxes the amount of losses due to impairment of the value of credits arising from possible insolvencies of debtors recorded in the tax period subject to declaration, which are not tax deductible according to the provisions of article 13.1 of the LIS.

Instead, the taxpayer will include in the [00322] decrease key the amount of these losses recorded in the period in which they are tax deductible by complying with the requirements of article 13.1 of the LIS. Likewise, when in a tax period after the accounting of the aforementioned impairment losses that gave rise to a positive adjustment to the accounting result (key [00321]) because it was not tax deductible, the value of the impairment is recovered, the taxpayer must include in key [00322] the amount corresponding to said reversal.

Finally, it should be noted that these codes must include the amounts relating to losses due to impairment of credits in Article 13.1 of the LIS, provided that they are not affected by the provisions of Article 11.12 of said regulation, in which case they must be declared according to the provisions of the following section (codes [00415] and [00211]).