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Form 200. Corporate Income Tax Declaration 2019

4.2.84 Codes 00329 and 00330 acquisition of shares of non-resident entities (DT 14ª LIS)

The fourteenth transitional provision of the LIS establishes that the deduction established for the acquisition of shares of non-resident entities, in section 5 of article 12 of the Consolidated Text of the Corporate Tax Law, approved by RDLeg. 4/2004, of March 5, according to the current wording for tax periods beginning before January 1, 2015, will continue to apply, under the terms established therein.

Therefore, taxpayers who, in tax periods beginning on or after January 1, 2002, have acquired values representing the participation in the equity of entities not resident in Spanish territory whose income can benefit from the exemption established in article 21 of RDLeg . 4/2004 or the exemption provided for in article 20 bis of Law 43/1995, will be entered in code [00330] (decreases), completing, where appropriate, their corresponding breakdown boxes, up to an annual maximum of one hundredth of the amount, which does not correspond to the assets and rights of the non-resident entity in Spanish territory, of the (positive) difference between the acquisition price of the participation and the net equity of the investee company at the date of acquisition, in proportion to that participation. And when they transmit the aforementioned values, they must enter in the key [00329] (increases), completing, where appropriate, their corresponding breakdown boxes, the amount that, due to their acquisition, they included in the key [00330 ] as a decrease.

This deduction from the tax base for the acquisition of shares in non-resident entities is also subject to the following conditions and considerations:

It will not apply to acquisitions of securities representing the participation in own funds of entities not resident in Spanish territory, carried out after December 22, 2007, without prejudice to the provisions of section 3 of article 1 of the Decision of the Commission of 12 January 2011, relating to the tax amortization of financial goodwill for the acquisition of foreign participations, case C-45/2007, in respect of acquisitions related to an irrevocable obligation agreed before 22 December 2007. However, in the case of acquisitions of securities that confer the majority of the participation in the own funds of entities resident in another State not a member of the European Union, carried out between December 22, 2007 and May 21, 2011, it may be applied the deduction when the existence of explicit legal obstacles to cross-border combinations of companies is demonstrated, in the terms established in sections 4 and 5 of article 1 of the aforementioned Commission Decision of January 12, 2011, in accordance with the provisions in the third paragraph of section 5 of article 12 of the RDLeg. 4/2004, in its wording given by the sixth Final Provision of Law 31/2011, of October 4, although containing the corresponding affectation for the correction of errors(1) (published in DOUE of November 26, 2011) of the aforementioned Decision of the European Commission of January 12, 2011.

And since there have been other draftings of section 5 of article 12 of the RDLeg. 4/2004 prior to that given by Law 31/2011, for tax periods starting on January 1, 2015, the following must be taken into account:

  1. In relation to acquisitions of shares of non-resident entities in Spanish territory carried out as of January 1, 2011, the deduction will only be applicable in admissible cases according to the wording of the third paragraph of section 5 of article 12 of the RDLeg. 4/2004 given by Law 31/2011.

  2. In relation to the acquisitions of shares of non-resident entities in Spanish territory carried out after December 22, 2007, the corresponding amount related to the pending deduction generated in tax periods beginning before January 1, 2011 will only be applicable to cases permitted in the wording of the third paragraph of section 5 of article 12 of the RDLeg. 4/2004 given by Law 31/2011, with the aforementioned affectation.

  3. In relation to the participations of non-resident entities in Spanish territory acquired between January 1, 2002 and December 22, 2007, the corresponding pending amounts may be deducted.

(1) According to which, for acquisitions made on December 21, 2007, the aforementioned article 12.5 of the LIS may be applied.(Back)