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Form 200. Corporate Income Tax Declaration 2019

4.2.43 Codes 00347 and 00348 lucrative and corporate transfers: application of market value (Article 17.4 LIS)

According to the provisions of section 4 of article 17 of the LIS , the following assets will be valued at their market value:

  1. Those transmitted or acquired for profit. Subsidies will not have this consideration.

  2. Those contributed to entities and the values received in consideration, unless the regime provided for in Chapter VII of Title VII of this Law applies or in the case of operations to increase capital or own funds for compensation of credits.

  3. Those transferred to the partners due to dissolution, separation of the partners, reduction of capital with return of contributions, distribution of the share premium and distribution of profits.

  4. Those transferred by virtue of a total or partial merger and division, unless the regime provided for in Chapter VII of Title VII of this Law is applicable.

  5. Those acquired by exchange.

  6. Those acquired by exchange or conversion, unless applicable to the regime provided for in Chapter VII of Title VII of this Law.

Market value will be understood to be that which had been agreed between independent parties. To determine this value, the methods provided for in article 18.4 of the aforementioned LIS will be applied.

Taxpayers involved in the operations referred to in the previous letters must include in the keys [00347] (increases) and [00348] (decreases), completing, where appropriate, their corresponding breakdown boxes, the adjustments derived from applying the following rules :

  • The transferring entity must integrate into its tax base the difference between the market value of the transferred elements and their tax value.

  • The partners of said entity will integrate into their tax base the difference between the market value of the participation received and the tax value of the canceled participation.

Note:

Market value will be understood to be that which would have been agreed under normal market conditions between independent parties, and any of the methods provided for in article 18.4 of the LIS may be accepted.