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Practical Manual of Companies 2020.

Compensation of dues for cooperative losses

Regulation: Article 24 Law 20/1990

In relation to the compensation of losses from previous tax periods, it should be noted that cooperative societies in application of their special tax regime do not offset negative tax bases under the terms of article 26 of the LIS , but negative installments from previous tax periods.

Keep in mind:

Therefore, cooperative societies will not enter any item in box [00547] "Compensation of negative tax bases in previous periods" on page 13 of form 200 as compensation for losses, but that the compensation of the aforementioned negative quotas will be carried out in box [00561] “Compensation of quotas for cooperative losses” on page 14 of the 200 model.

Limits to the compensation of negative quotas

Regarding the quantitative limits for the compensation of negative contributions, article 24.1 of Law 20/1990 establishes that if the algebraic sum of the amounts resulting from applying to the tax bases, positive or negative, the corresponding tax rates are negative , their amount may be offset by the cooperative with the positive full installments of the following tax periods, taking into account the following limits:

  • Cooperative societies whose net turnover is less than 20 million euros during the 12 months prior to the start date of the tax period , may offset negative full installments with the limit of 70 percent of the full installment prior to compensation.

  • Cooperative societies whose net amount of turnover is at least 20 million euros during the 12 months prior to the start date of the period tax, the eighth Additional Provision of Law 20/1990 establishes that the 70 percent limit of article 24.1 of the aforementioned Law 20/1990, will be replaced for the following:

    • 50 percent , when in the aforementioned 12 months the net amount of the turnover is at least 20 million of euros , but less than 60 million euros.

    • 25 percent , when in the aforementioned 12 months the net amount of the turnover is at least 60 million of euros .

The limitation on the compensation of negative installments will not apply to the amount of the income corresponding to reductions and holdings consequence of an agreement with creditors not related to the taxpayer.

In any case , full installments will be compensable in the tax period for the amount resulting from multiplying 1 million euros to the entity's average tax rate, whatever it may be. the net amount of the turnover.

Regarding the temporary limit for the compensation of negative contributions, the negative full contributions may be offset with the positive full contributions of the following tax periods without any time limit.

Administration checks

As established in article 24.1 of Law 20/1990, the right of the Administration to verify the negative contributions compensated or pending compensation will expire after 10 years counting from the following day to the one in which the period established for submitting the Corporate Tax declaration corresponding to the tax period in which the right to apply it was generated ends.

After this period, the cooperative society must prove the negative contributions whose compensation it intends to compensate, by displaying the Tax return and accounting, with proof of its deposit during the aforementioned period in the Registry. Trade.

Completion of form 200 (page 22)

box [00561] “Compensation of fees for cooperative losses” on page 14 of form 200 will be completed exclusively when the reporting entity is a cooperative society whose previous full quota for the year ( box [00560] ) is positive , provided that it has pending compensation of any previous full negative amount from previous years and its compensation, total or partial, is decided in this declaration.

Keep in mind:

For tax periods beginning on or after January 1, 2019 , information on the net amount of the turnover must be included on page 21 of form 200, of the twelve months prior to the start date of the tax period, for the purposes of determining the application of the limits to the compensation of negative contributions for losses of cooperatives in the terms provided for in article 24.1 of the Law 20/1990.

For these purposes, when completing the box [00561] a breakdown window will open (except in cases where the table has already been completed previously). on page 21 of form 200), in which the taxpayer must indicate whether the net amount of the turnover during the twelve months prior to the start date of the tax period has been less than 20 million, at least 20 million of euros, but less than 60 million or at least 60 million euros. The option marked by the taxpayer will be moved to the table “Net amount of turnover for the twelve months prior to the start date of the tax period” on page 21 of form 200.

The option marked by the taxpayer will be taken into account also to determine the limits in the calculation of the accounting corrections derived from the application of article 11.12 of the LIS, the compensation of negative tax bases and deductions for double taxation, so once the table on page 21 of form 200 is completed, it will not be shown on other screens.

The amount to be entered in box [00561] will be the one resulting from the completion of of breakdown table “Details of quota compensation” on page 22 of model 200.

In this table, cooperative societies must detail for each year from which the negative contributions come, the amount pending compensation .

Keep in mind: 

The total of the column "Applied in this settlement" that is collected in box [00561] of the breakdown table "Installation compensation details" on page 22 of form 200, will be moved to box [00561] on page 14 of said model.

The amount in box [00561] "Compensation of fees for cooperative losses" may not exceed, in any case, the positive amount reflected in box [00560] "Previous full fee."

In application of the above, in box box [00561] “Compensation of fees for cooperative losses” on page 14 of form 200, cooperative societies must enter the total amount of the compensated installments in this settlement, taking into account the following limits:

  • When in the 12 months preceding the date on which the tax period begins the net amount of the turnover is less than 20 million euros, cooperative societies must apply the limit of 70 percent on the result of subtracting from the previous full quota (box [00560]), the income corresponding to the reversal of impairments (box [01510]). To the result of this operation, box [01510] will be added to obtain the amount to be entered in box [00561] "Compensation of fees for cooperative losses."

    Box [00561] = 70% x (box [00560] + box [00210] - box [00480] + box [00408] - box [01037] - box [01510]) + (box [01510])

  • When in the 12 months preceding the date on which the tax period begins the net amount of the turnover is at least 20 million euros, but less to 60 million euros, cooperative societies must apply the limit of 50 percent on the result of subtracting from the previous full quota (box [00560]), the income corresponding to write-offs by agreement with unrelated creditors (box [00593]) and to the reversal of impairments (box [01510]). To the result of this operation, boxes [00593] and [01510] will be added to obtain the amount to be entered in box [00561] "Compensation of fees for cooperative losses."

    Box [00561] = 50% + box [00593])

  • When in the 12 months preceding the date on which the tax period begins the net amount of the turnover is of at least 60 million euros, cooperative societies must apply the limit of 25 percent on the result subtracted from the previous full quota (box [00560]), the income corresponding to write-offs by agreement with unrelated creditors (box [00593]) and to the reversal of impairments (box [01510]). To the result of this operation, boxes [00593] and [01510] will be added to obtain the amount to be entered in box [00561].

    Box [00561] = 25% + box [00593])

Remember:

In any case, full installments will be compensable in the tax period for the amount resulting from multiplying 1 million euros to the entity's average tax rate, whatever it may be. the net amount of the turnover.