Education and Promotion Fund expenses
a) Cooperative results
In box [C4] the amounts of cooperative results that the cooperatives allocate, on a mandatory basis , to the Education and Promotion Fund , and that are tax deductible in accordance with the provisions of articles 18.2 and 19 of Law 20/1990, will be included.
For tax purposes, the deductible amount of the allocation to the Education and Promotion Fund may not exceed in each financial year percent of the net surplus thereof. The excess will not be tax deductible .
Article 58.1 of Law 27/1999 establishes that, of the surpluses accounted for in determining the cooperative result , once the losses of any nature from previous years have been deducted and before the consideration of the Corporate Tax, at least 5 percent will be allocated to the Education and Promotion Fund .
Keep in mind:
The allocations to this fund from cooperative results that are not -deductible must be included as accounting expense in box [C2]. In addition, for the part that is not tax deductible, a positive adjustment must be made to the accounting result (box [C6]), the amount of which must be included in box [C7].
b) Extra-cooperative results
In box [E4] the amounts of the extra-cooperative results that are allocated by the cooperatives to the Education and Promotion Fund will be recorded. These amounts are not tax deductible.
Keep in mind:
The provisions to this fund charged to non-cooperative results, are not tax deductible , so a positive adjustment must be made to the accounting result (box [E6]) whose amount must be included in box [E7].
New:
Article 13 of Royal Decree-Law 15/2020, of April 21, on urgent complementary measures to support the economy and employment, contains an extraordinary measure to temporarily make the use of the Cooperative Promotion and Education Fund more flexible, allowing that during the validity of the state of alarm declared by Royal Decree 463/2020, of March 14, by which the state of alarm is declared for the management of the health crisis situation caused by COVID-19 and its possible extensions and until December 31, 2020, said Fund may be used for any activity that contributes to stopping or alleviating the effects of the health crisis derived from COVID-19 , through own shares, donations to other public or private entities or to providing liquidity to the cooperative to guarantee the continuity of its operation. Likewise, for these exclusive purposes, the provisions of articles 13.3 and 19.4 of Law 20/1990, of December 19, on the Tax Regime of Cooperatives, will not apply.
Article 12 of Royal Decree-Law 8/2021, of May 4, repeals, with effect from May 9, 2021, article 13 of Royal Decree-Law 15/2020, of April 21, to extend with certain modifications in the requirements and until December 31, 2021, the temporary flexibility in the use of the Cooperative Education and Promotion Fund in order to alleviate the effects of COVID-19.