9.6.3 Conversion of deferred tax assets into credit payable to the Tax Administration

According to the provisions of article 130.3 of the LIS , the conversion of the deferred tax assets referred to in article 130.1 of the LIS will occur at the time of presentation of the self-assessment of Corporate Tax corresponding to the tax period in which the circumstances described in article 130.2 of the LIS occurred.

As established in article 130.1 of the LIS, the deferred tax assets corresponding to the provisions referred to in article 11.12 of the LIS may be converted into a claim payable against the Tax Administration, for an amount equal to the positive liquid quota corresponding to the tax period of generation of those, provided that any of the circumstances included in article 130.2 of the LIS apply:

That the taxpayer records accounting losses in its annual accounts, audited and approved by the corresponding body.

In this case, the amount of the deferred tax assets subject to conversion will be determined by the result of applying to their total, the percentage that the accounting losses for the year represent with respect to the sum of capital and reserves.
That the entity is subject to liquidation or judicially declared insolvency.

Deferred tax assets due to the right to offset negative tax bases in subsequent years will also become a claim payable to the Tax Administration, when they are a consequence of integrating into the tax base the provisions for impairment of credits or other assets. derived from the possible insolvencies of the debtors, as well as the endowments or contributions to social security systems and, where appropriate, early retirement, which generated the deferred tax assets referred to in the first paragraph of article 130.1 of the LIS.

The conversion of deferred tax assets into a credit payable to the Tax Administration referred to in article 130.1 of the LIS will determine that the taxpayer may choose to request payment from the Tax Administration or to offset said credits with other debts. of a state tax nature that the taxpayer himself generates from the moment of the conversion, according to the procedure and within the period established in article 69 of RIS .

On the other hand, deferred tax assets may be exchanged for Public Debt securities, once the period of eighteen years has elapsed, computed from the last day of the tax period in which the accounting record of such assets occurs.