7.2.4 Breakdowns of deductions for international double taxation RDLeg. 4/2004

General considerations

This section must record the deductions to avoid international double taxation generated in the years 2005 to 2014 and that could or could be carried over to future tax periods.

Structure of this section

Column “pending deduction” . If it is a deduction generated in any of the tax periods prior to the one that is subject to settlement and beginning in 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013 or 2014 of block « DI international previous years » , the balance will be recorded in each key in this column corresponding to the deduction that was pending application at the beginning of the tax period being declared.

However, if the deduction has been generated in accordance with the provisions of letter b) of section 1 of article 31 of the LIS , it must be taken into account that said balance must be the relative at the tax rate of the tax period in which it was generated.

The purpose of the column « generation period tax rate» is to record the tax rate for which the taxpayer, beneficiary of the deduction, was taxed in the tax period in which it was generated.

In the column « tax rate 2019 » the tax rate is shown (The tax rate 2019 will be equal to the quotient of the division: amount of box [00562] / amount of box [00552]) for which the reporting taxpayer is taxed in the tax period that began within the year subject to declaration.

In the column « 2019 pending deduction » the amounts referring to pending deductions from previous years will be collected .

In the case of deductions generated in accordance with article 31.1.b) of the LIS and the type of tax applicable by the taxpayer who is the beneficiary of the deduction in the tax period in which it was generated is different from the type of tax for which he is taxed in the tax period being settled, the amount that must be entered in this column will be the result of multiplying the amount in the corresponding box in the "Pending deduction" column by the fraction: 2019 tax rate/generation period tax rate.

Regarding the type of tax to be considered, the provisions established in section 4 of the twenty-third transitional provision of the LIS must be taken into account, according to which the amount of the deductions established in this transitional provision and in articles 30, 31.1. b) and 32.3 of RDLeg . 4/2004 will be determined taking into account the tax rate in force in the tax period in which it applies.

In any case of generation of the deduction in accordance with article 31.1.a) of the LIS, or in the case of having been generated in accordance with article 31.1.b) of the LIS only when the tax rate of the tax period of generation is equal to the of the tax period being settled, the amount entered in column « Pending deduction » will be equal to the that is entered in the corresponding box in the "2019 pending deduction" column.

The column «a applied in this settlement» is intended to collect part (or all, where appropriate) of the corresponding amount in the column « 2019 pending deduction" that is applied in the settlement of the tax period subject to settlement.

In this column, it must be taken into account that the application of this deduction is limited to the amount of the full quota that appears in code [00562] on page 14 of form 200.

For these purposes, according to the provisions of section 2 of the fifteenth Additional Provision of the LIS, in periods beginning on or after January 1, 2016, for taxpayers whose net turnover is at least 20 million euros during the 12 months prior to the date on which the tax period begins, this amount may not exceed 50 percent of the taxpayer's full amount.

The column «p pending application of future periods» will collect the part of the corresponding deduction from the column “2019 pending deduction” that was not included in the corresponding box in its next column, that is, because it was not applied in the settlement of the tax period being declared, it remains pending application in subsequent tax periods.