4.2.71 Codes 00323 and 00324 small companies losses due to impairment credits insolvencies (Article 104 LIS)

According to the provisions of article 104 of the LIS , in the tax period in which the conditions of article 101 of the LIS are met, entities may deduct the loss due to impairment of credits for the coverage of the risk derived from possible insolvencies up to the limit of 1 percent on existing debtors at the conclusion of the tax period.

For these purposes:

• The aforementioned debtors will not include debtors for whom the loss due to impairment of credits due to insolvencies established in article 13.1 of the LIS has been recognized and those others whose losses due to impairment are not deductible in accordance with the provisions of this last article.

• The balance of the loss due to impairment carried out as indicated may not exceed the aforementioned limit.

In the tax periods in which the conditions of article 101 of the LIS are no longer met, the losses incurred in these tax periods, due to deterioration of the credits to cover the risk derived from the possible insolvencies of the debtors, will not be deductible until the amount of the balance of the impairment loss referred to in the first paragraph of this section.

In accordance with the above, entities that meet the conditions of article 101 of the LIS must include in the key [00323] (increases), completing, where appropriate, their corresponding breakdown boxes, the amount of the excess of losses due to impairment recorded on the tax deductible in the tax period being declared. And in the event of reversal of impairment losses, in the amount that have been subject to tax correction of increase in previous tax periods, they must be included, completing, where appropriate, their corresponding breakdown boxes, in the code [00324]. (decreases) in the reversal tax period.