Practical examples

Example 1:

Company "M" is a small entity that pays taxes under the special regime applicable to said entities provided for in articles 101 to 105 of the LIS , whose tax period coincides with the calendar year. .

Said company in fiscal year 2019 was obliged to provide a reserve of 100,000 euros and only provided the amount of 50,000 euros in said fiscal year.

In the Corporate Tax declaration for fiscal year 2019 , company "M" had to complete the "Reserve provision" section of the "Equalization reserve" table on page 20 bis of the form 200 as follows:

Later in fiscal year 2020, company "M" provides an additional reserve of 25,000 euros corresponding to the amount of the reserve that it was obliged to provide in fiscal year 2019.

In the Corporate Tax declaration for the 2020 financial year , company "M" must complete the "Reserve provision" section of the "Equalization reserve" table on page 20 bis of the form 200 as follows:

As can be seen in this example, the amount of 100,000 euros to be entered in the column "Reserve amount to be allocated" does not vary in the different Corporate Tax returns as long as the obligation to provide the equalization reserve persists.

Example 2:

Company "A" is a small entity that is taxed under the special regime applicable to such entities provided for in articles 101 to 105 of the LIS, whose tax period coincides with the calendar year.

Fiscal year 2019:

Calculation of capitalization and leveling reserves for fiscal year 2019

1. Firstly, company "A" calculates the capitalization reserve under the terms of article 25 of the LIS:

   Total:	300,300	Total:	330,300
   FP for the purposes of article 25 as of 01/01/2019		FP for the purposes of article 25 as of 12/31/2019
   Social capital	300,000	Social capital	300,000
   Voluntary reserves	300	Voluntary reserves	30,300

   According to the previous data, the increase in own funds (Δ FP) is 30,000

   Therefore, the capitalization reserve for the year, as established in article 25 of the LIS, will be 10% of the increase in the company's own funds, with a limit of 10% of the positive tax base of the tax period prior to this. reduction, the integration referred to in section 12 of article 11 of this Law and the compensation of negative tax bases.

   • Capitalization reserve = 10% reduction of Δ FP = 3,000
   • Limit 10% BI prior to capitalization reserve = 10% 250,000 = 25,000
   • Capitalization reserve pending application = 0

   The requirements for maintaining the increase in own funds must be met. Likewise, a capitalization reserve must be provided in the amount of 3,000.

2. Regarding the equalization reserve for the 2019 financial year, as established in article 105 of the LIS, it may be reduced by up to 10% of the positive tax base, with a limit of 1 million euros:

   • Equalization reserve = 10% positive BI = 10% 247,000 = 24,700
   • Limit = 1,000,000

   The amount of 24,700 will be added to the tax base of the tax periods that end in the 5 years immediately following the end of the 2019 tax period, provided that company A 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 conclusion of the aforementioned period.

   A leveling reserve in the amount of 24,700 must be provided in 2019

   The settlement of the Corporate Tax corresponding to the 2019 financial year is as follows:

   IS settlement 2019
   Accounting result before taxes 2019	250,000
   Differences	0
   BI prior to the reduction of art. 25 already negative BI compensation	250,000
   Capitalization reserve (limit 10% x 250,000 = 25,000)	-3,000
   Compensation of negative tax bases from previous periods	0
   Taxable base	247,000
   Leveling reserve (limit 1,000,000)	-24,700
   BI after leveling reservation	222,300
   Tax rate	25%
   Total tax liability	55,575
   Tax deductions and credits	0
   Liquid quota	55,575
   Withholdings and prepayments	-5,000
   Due tax	50,575

Fiscal year 2020:

Calculation of capitalization and leveling reserves for fiscal year 2020

1. Firstly, company "A" calculates the capitalization reserve under the terms of article 25 of the LIS:

   Total:	330,300	Total:	363,300
   FP for the purposes of article 25 as of 01/01/2020		FP for the purposes of article 25 as of 12/31/2020
   Social capital	300,000	Social capital	300,000
   Voluntary reserves	30,300	Voluntary reserves	60,300
   ---	---	Capitalization reserve	3,000

   According to the previous data, the increase in own funds (Δ FP) is 33,000.

   Therefore, the capitalization reserve for the year, as established in article 25 of the LIS, will be 10% of the increase in the company's own funds, with a limit of 10 percent of the positive tax base of the tax period prior to this reduction, to the integration referred to in section 12 of article 11 of this Law and to the compensation of negative tax bases.

   • Capitalization reserve = 10% reduction of Δ FP = 3,300
   • Limit 10% BI prior to capitalization reserve = 0
   • Capitalization reserve pending application during the next two years = 3,300

2. Regarding the leveling reserve for fiscal year 2020, given that the tax base for the period is -20,000, the amounts reduced by the leveling reserve for 2019 must be added up to said amount.

   • 2019 leveling reserve addition = 20,000
   • Leveling reserve pending addition = 24,700 - 20,000 = 4,700

   The settlement of the Corporate Tax corresponding to the 2020 financial year is as follows

   IS settlement 2020
   Accounting result before taxes 2020	-20,000
   Differences	0
   BI prior to the reduction of art. 25 already negative BI compensation	-20,000
   Capitalization reserve (limit 0)	0
   Compensation of negative tax bases from previous periods	0
   Taxable base	-20,000
   Leveling reserve (negative BI limit: -20,000)	20,000
   BI after leveling reservation	0
   Tax rate	25%
   Total tax liability	0
   Tax deductions and credits	0
   Liquid quota	0
   Withholdings and prepayments	-5,000
   Due tax	-5,000

Completion in model 200 of the tables of capitalization and leveling reserves for years 2019 and 2020

• Corporate Tax Return 2019

• Corporate Tax Return 2020