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Form 200. Corporate Income Tax Declaration 2019

4.2.23 Codes 00416 and 00543 application of the limit of article 11.12 LIS to impairment losses of article 13.1 LIS and provisions and expenses (Article 14.1) and 14.2) of the LIS)

Article 11.12 of the LIS establishes in its first paragraph that provisions for impairment of credits or other assets derived from possible insolvencies of debtors not linked to the taxpayer, not owed by public law entities and whose deductibility does not occur by application of the provisions of article 13.1.a) of this Law, as well as those derived from the application of sections 1 and 2 of article 14 of this Law, corresponding to endowments or contributions to social security systems and, where applicable, pre-retirement, that have generated deferred tax assets, to which the right established in article 130 of this Law applies, will be integrated into the tax base in accordance with the provisions in this Law, with the limit of 70 percent of the positive tax base prior to its integration, to the application of the capitalization reserve established in article 25 of this Law and to the compensation of negative tax bases.

In relation to the limit established in the first paragraph of article 11.12 of the LIS, the fifteenth additional provision of said Law establishes that, for tax periods beginning on or after January 1, 2016, taxpayers whose net amount of the figure of business is at least 20 million euros during the 12 months prior to the date on which the tax period begins, they will replace said limit with the following:

  • 50 percent, when in the aforementioned 12 months the net amount of the turnover is at least 20 million euros but less than 60 million euros.

  • 25 percent, when in the aforementioned 12 months the net amount of the turnover is at least 60 million euros.

Likewise, with effects for the same period, the thirty-sixth transitional provision of the LIS establishes that for those taxpayers to whom the fifteenth Additional Provision of this rule is not applicable, the limit established in article 11.12 of the LIS will be 60%. .

Therefore, in the cases in which these provisions are integrated into the tax base because they are tax deductible and the limit provided for in article 11.12 of the LIS must be taken into account, the amount that the total amount of these provisions (which will have been recorded in the key [00211]), exceeds the established limit of the positive tax base prior to its integration, to the application of the capitalization reserve established in article 25 of the LIS and the compensation of negative tax bases.

In short, code [00416] must include the difference between the amount entered in code [00211] and the limit provided for in article 11.12 of the LIS.

Regarding the provisions that have not been integrated into the tax base in the tax period that were deductible for exceeding the limit established in the first paragraph of article 11.12 of the LIS, they must be integrated in the immediately following tax periods in the code [00543 ] and, where appropriate, in their corresponding breakdown boxes, also taking into account the same limit. For this purpose, the second paragraph of article 11.12 of the LIS establishes that the provisions corresponding to the oldest tax periods will be integrated first.

Law 48/2015, of October 29, on the General State Budgets for the year 2016, modified with effect for tax periods beginning on January 1, 2016, articles 11.12 and 130 of the LIS, together with the provision transitional thirty-third of said norm, to introduce new integration criteria in the tax base of this type of endowments.

As a consequence of this reform, for tax periods beginning on or after January 1, 2016, it is established in the third paragraph of article 11.12 of the LIS that if in a tax period provisions have been made for impairment of credits or other assets derived from possible insolvencies of debtors not linked to the taxpayer, not owed by public law entities and whose deductibility does not occur by application of the provisions of article 13.1.a) of this Law, as well as those derived from the application of sections 1 and 2 of article 14 of this Law, corresponding to endowments or contributions to social security systems and, where appropriate, pre-retirement, which have generated deferred tax assets, and the right established in article 130 of This Law will apply only to a part of them; firstly, those provisions corresponding to the assets to which the aforementioned right does not apply will be integrated into the tax base.

Likewise, for tax periods beginning on or after January 1, 2016, article 130 and the thirty-third transitional provision of the LIS establish that the limit for the integration into the tax base of those non-deductible expenses at the time in which they are accounted for and that generate deferred tax assets, established by article 11.12 of the LIS, will be applied when in the tax period in which said assets were generated the net amount of said period is positive.

That is, in the tax period in which these expenses are deductible, the limit established in article 11.12 of the LIS for their integration in the tax base does not apply to those that generated deferred tax assets for an amount greater than the net amount. positive, being integrated into the tax base, therefore, in the first place.