Foreign tax paid by the taxpayer, non-deductible due to affecting income with deductions for double taxation

In application of the provisions of article 31.2 of the LIS , the taxpayer must make the following adjustments in the boxes [00340 ] and [01589] "Foreign tax borne by the taxpayer, not deductible because it affects income with a deduction for double taxation (art. 31.2 LIS)" on page 13 of model 200:

• Meanwhile, because it affects income integrated into the tax base, obtained and taxed abroad by a tax (accounted as an expense) of an identical or analogous nature to the Corporate Tax, and in relation to said income the taxpayer is a creditor to the deduction to avoid international double taxation established in article 31.2 of the LIS, the amount of the tax paid abroad will be included in box [00340] , as an increase correction, even if it was not fully deductible.

  For these purposes, will be considered a deductible expense that part of the amount of the tax paid abroad that is not subject to deduction in the full quota by application of the provisions of article 31.1 of the LIS, as long as it corresponds to the performance of economic activities abroad.

• In box [01589] of reductions, you must enter the part of the tax paid abroad that has not generated a deduction for double taxation due to exceeding the quota that would apply in Spain if the income would have been obtained in Spanish territory, and provided that it corresponds to the performance of economic activities abroad.

  This adjustment is made this way because article 31.2 of the LIS establishes that will be considered a deductible expense that part of the tax amount paid in the foreigner who is not subject to deduction in the full quota by application of the provisions of article 31.1 of the LIS, provided that it corresponds to the performance of economic activities abroad.