4.2.60 Codes 00184 and 00544 temporary joint venture (UTE), adjustments for exempt income of UTE operating abroad (Article 45.2 LIS)

In the case of a temporary joint venture that has benefited from the exemption regime provided for in article 50 of the Revised Text of the Corporate Tax Law approved by RDLeg. 4/2004, as amended in force for tax periods beginning before 1 January 2015, had obtained negative net income abroad that had been included in the tax base of the member entities in tax periods beginning before 1 January 2013, when in successive years the temporary union obtains positive income, the member companies will include in their tax base, in a positive capacity, the previously imputed negative income, up to the limit of the amount of said positive income.

In accordance with the provisions of the sixteenth transitional provision of the LIS , when in successive years the temporary union obtains positive income, the member companies will integrate in the key [00184], of increases, the previously imputed negative income, with the limit of the amount of said positive income.

According to the provisions of section 2 of article 45 of the LIS, member companies of a temporary joint venture that operates abroad may benefit from the exemption provided for in article 22 of the LIS or from the deduction for double taxation provided for in article 31 of said Law on income from abroad, provided that the requirements established therein are met.

In this sense, when it comes to adjustments corresponding to the exemption of article 22 of the LIS, they will not be included in these keys. They will be included in the keys [00256] and [00278] relating to exemption of income abroad (article 22 of the LIS).