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Form 200. Corporate Income Tax Declaration 2019

11.2.2.7 Equalization reserve converted into quotas (only entities of article 101 LIS)

Codes 01285 and 01286 will be completed only when the reporting entity is a cooperative society and chooses to apply the equalization reserve provided for in article 105 of the LIS for those entities that meet the conditions of the article 101 of the LIS and that apply the tax rate provided for in the first paragraph of section 1 of article 29 of the LIS.

These keys will be completed by those cooperative societies that choose to apply the tax incentive of the equalization reserve established in article 105 of the LIS, provided that they meet the conditions established in article 101 of the LIS and apply the tax rate provided for in the first paragraph of section 1 of article 29 of this Law.

Article 29.2 of the LIS establishes that tax-protected cooperative societies will be taxed on cooperative results at 20% and on non-cooperative results at the general rate of 25%; and credit cooperatives and rural banks for general cooperative results of 25% and for non-cooperative results of 30%.

According to the provisions of this article 29.2 of the LIS, a tax-protected cooperative pays corporate tax at a tax rate different from the general one, so they cannot apply the equalization reserve (not even for extra-cooperative results).

Consequently, only cooperative societies that do not have tax-protected status can choose to apply this tax benefit.

Therefore, in the tax periods in which these cooperative societies choose to apply said tax benefit, they must make a negative adjustment (key [01286] of decreases) in the previous positive full quota, taking into account the limits mentioned in article 105 of the LIS.

Likewise, cooperative societies that have chosen to apply said tax benefit will be obliged to reverse said adjustment (key [01285] of increases) in the tax periods that conclude in the five years immediately and following the end of said period, as it generates full negative prior fee and up to the amount thereof.