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Form 200. Corporate Income Tax Declaration 2019

4.2.55 Codes 00373 and 00374 charitable-social work of savings banks and banking foundations (Article 24 LIS)

In application of the provisions of article 24 of the LIS , savings banks and banking foundations must make the following adjustments in the codes [00373] and [00374] «Charitable-social work of savings banks and banking foundations (art. 24 LIS)»:

  • According to the provisions of article 24.1 of the LIS, the amounts that savings banks and banking foundations allocate from their results to the financing of charitable-social works will be tax deductible, in accordance with the rules by which they are governed.

    In this sense, article 24.2 of the LIS establishes that the amounts assigned to the charitable-social work of savings banks and banking foundations must be applied, at least, 50 percent, in the same tax period to which the assignment corresponds, or in the immediate following, to the realization of the affected investments, or to defray maintenance expenses of the institutions or establishments hosted by it.

    Consequently, savings banks and banking foundations must include in the reductions key [00374] the amounts that they allocate from the result of the year corresponding to the tax period being declared to the financing of charitable-social works.

  • Article 24.3 of the LIS establishes that the following will not be included in the tax base:

    1. The maintenance expenses of the charitable-social work that are carried out from the social work fund, even if they exceed the allocations made, without prejudice to the fact that they are considered as application of future allocations. However, such expenses will be tax deductible when, in accordance with the applicable accounting regulations, they are recorded against the profit and loss account.

    2. The income derived from the transmission of investments affects the charitable-social work.

      According to the provisions of this article 24.3 of the LIS, savings banks and banking foundations must include in the increase key [00373] the amount of the maintenance expenses of the charitable-social work in the tax period of its accrual, and in the key [00374] of reductions, the amount of income derived from the transfer of investments affecting the charitable-social work in the tax period of accrual of said income.

  • Finally, article 24.4 of the LIS establishes that the endowment for the charitable-social work carried out by the banking foundations or, where appropriate, the maintenance expenses of the charitable-social work that, in accordance with the accounting regulations that result applicable, are recorded with a charge to the profit and loss account, may reduce the tax base of the credit institutions in which they participate, in the proportion that the dividends received from the aforementioned entities represent with respect to the total income of the banking foundations. , up to the maximum limit of the aforementioned dividends.

In order to apply said reduction, the banking foundation must inform the credit institution that had paid the dividends of the amount of the reduction thus calculated and the non-application of said amount as a tax-deductible item in its declaration of this Tax.

Therefore, savings banks and banking foundations must include in the increase key [00373] the amount of the endowment to the charitable-social work, or, where applicable, the amount of their maintenance expenses that exceeds the maximum limit. of the aforementioned dividends.