4.3.3.6 Keys 01033 and 01034 Leveling reserve. Breakdown table (Page 20a)

Article 105 of the LIS introduces only for small entities the possibility of opting for a new tax benefit linked to the compensation of negative tax bases.

For these purposes, this provision establishes that entities that meet the conditions established in article 101 of the LIS in the tax period and apply the tax rate provided for in the first paragraph of article 29.1 of said regulation, may reduce their positive tax base by up to 10 percent of its amount.

However, this reduction may not exceed the amount of 1 million euros. In the event that the tax period lasts less than one year, the amount of the reduction may not exceed the result of multiplying 1 million euros by the proportion between the duration of the tax period and the year.

Therefore, in tax periods beginning on or after January 1, 2015, entities that choose to apply this tax benefit must make a negative adjustment (key [01034] for decreases) to their positive tax base, taking into account the limits mentioned in the previous paragraphs.

Likewise, Article 105 of the LIS establishes that the amounts referred to in the previous paragraphs will be added to the tax base of the tax periods that conclude in the 5 years immediately following the end of the tax period in which said reduction is made, provided that the taxpayer has a negative tax base, and up to the amount thereof. The remaining amount will be added to the tax base of the tax period corresponding to the date of completion of the aforementioned period.

Therefore, these entities that have chosen to apply said tax benefit will be obliged to reverse said adjustment (key [01033] of increases) in the tax periods that conclude in the five years immediately following the end of said period, as they generate a negative tax base and up to the amount thereof.

In the event that, within the period of the five immediate and successive years, said entities have not generated sufficient negative tax bases for the full reversal of the negative adjustment made in the initial tax period, they must add the remaining amount to their tax base in the last tax period corresponding to the calculation of the five years.

Article 105 of the LIS requires entities that apply this benefit to set aside a reserve for the amount of the reduction referred to in said article, which will not be available until the tax period in which the amounts referred to in the previous paragraph are added to the entity's tax base.

The reserve must be provided against the positive results of the year in which the reduction in tax base is made. If this reserve cannot be set up, the reduction shall be dependent upon the reserve being made against the first profits earned in subsequent years.

Regarding this reserve, article 105.5 of the LIS establishes that the amounts allocated to its provision may not be applied simultaneously to the fulfillment of the capitalization reserve established in article 25 of this regulation, nor of the Reserve for Investments in the Canary Islands provided for in article 27 of Law 19/1994, of July 6.

Finally, note that to complete the aforementioned keys [01033] and [01034], the box corresponding to the leveling reservation on page 20 bis of form 200 will open.

Likewise, entities that choose to apply this tax benefit must mark the code [00006] on page 1 of form 200.