Temporary negative adjustments originating in previous years
In the event that the taxpayer has to make a correction to the result of the Profit and Loss Account that entails a negative temporary correction originating from previous years, by completing the corresponding box of pages 12 and 13, the breakdown table "Detail of the corrections to the profit and loss account (excluding the correction for Corporate Tax)" on page 19 of form 200 will be displayed simultaneously in the Web Companies form. This information, once completed, will be grouped in the detail table contained on pages 26 bis to 26 exies of model 200.
In this case, the box corresponding to decreases in temporary corrections originating in previous years must be completed in the part of the table dedicated to Corrections for the year.
Likewise, the box for Future decreases of temporary corrections in the columns corresponding to « Pending balance at the beginning of the year must be completed. » and « Outstanding balance at the end of the year” because the positive adjustment at origin reverses through negative extra-accounting adjustments, which implies future decreases in the tax base. Regarding the Future decreases box in the column « Outstanding balance at the beginning of the year » , it must be completed by the himself amount that was entered in the box Future decrease of the column " Outstanding balance at the end of the year" of the settlement from previous tax period. On the other hand, with respect to the column « Outstanding balance at the end of the financial year » the future decreases box must be completed. The balance in this box will decrease until it becomes zero, when the entire amount has been reversed.
For all of the above, during the tax periods in which the Correction reverts because it has its origin in previous years, in the part of the table corresponding to « Pending balance in order to exercise» , the box for Future decreases of Temporary corrections will decrease its value with respect to the Balance of the previous year in the amount of the negative correction of this year . For these purposes, the " Outstanding balance at the end of the year" will reflect the total amount pending reversal in subsequent years . Since this balance is included in the part of future decreases, it tells us that this amount is being reversed through negative extra-accounting adjustments.
Example:
Starting from the example posed in the case of positive temporary correction originating in the year, we continue with the years 2022 to 2028.
Company "C" has acquired new machinery for an amount of 200,000 euros. The acquisition is carried out on January 1, 2020, the date on which such elements are made available to Company "C" and come into operation. The financial year of Company "C" coincides with the calendar year. It is estimated that the residual value of the elements is not significant, so the amortizable value coincides with the acquisition price.
The accounting provision for amortization is made by applying a coefficient of 50 percent, which the company estimates as effective depreciation of such elements. Company "C" decides to tax-depreciate the machinery in accordance with the table contained in art. 12.1.a) of the LIS , that is, a coefficient of 12 percent will apply.
In accordance with what is stated on the article. 12.1 of the LIS, the following adjustments will have to be made in boxes [00303] and [00304] “Differences between accounting and tax amortization (art. 12.1 LIS)” on page 12 of the model 200:
| Financial year | Accounting amortization | Tax amortization | Correction | Form 200 | Balance at year-end |
|---|---|---|---|---|---|
| 2020 | 200,000 x 50% = 100,000 | 200,000 x 12% = 24,000 | 76,000 | [00303] | -76,000.00 |
| 2021 | 200,000 x 50% = 100,000 | 200,000 x 12% = 24,000 | 76,000 | [00303] | -152,000.00 |
| 2022 | --- | 200,000 x 12% = 24,000 | -24,000 | [00304] | -128,000.00 |
| 2023 | --- | 200,000 x 12% = 24,000 | -24,000 | [00304] | -104,000.00 |
| 2024 | --- | 200,000 x 12% = 24,000 | -24,000 | [00304] | -80,000.00 |
| 2025 | --- | 200,000 x 12% = 24,000 | -24,000 | [00304] | -56,000.00 |
| 2026 | --- | 200,000 x 12% = 24,000 | -24,000 | [00304] | -32,000.00 |
| 2027 | --- | 200,000 x 12% = 24,000 | -24,000 | [00304] | -8,000.00 |
| 2028 | --- | 8,000 | -8,000 | [00304] | 0.00 |
Total tax amortization = 24,000 x 8 + 8,000 = 200,000
Total accounting amortization = 100,000 + 100,000 = 200,000
The tax correction that Company "C" will carry out to determine the tax base of the Corporate Tax corresponding to 2022 (which will be collected in the box [00304] ) will be as follows:
| Accounting amortization | Tax amortization | Decrease in the result of the profit and loss account |
|---|---|---|
| 0 | 200,000 x 12% = 24,000 | 24,000 |
In fiscal year 2022 , the machinery is depreciated on an accounting basis , therefore, a negative extra-accounting adjustment is generated which must be entered in box [00304] of decreases , as a consequence of the reversal of the positive adjustment , for the amount of the tax amortization , that is, worth 24,000 euros. This is a Temporary negative correction originating from previous years.
In the Web Companies form, in the period 2022, when the box [00304] is to be completed, the table on page 19 of form 200 will be displayed and the box for Decreases of « Temporary corrections with origin must be completed in previous years" of the part of the table dedicated to " Corrections for the year" for the amount of 24,000 euros. The form will transfer the completed information to box box [02568] « Temporary originating in previous years» on page 26 bis of form 200.
Likewise, the part corresponding to « Outstanding balance at the beginning of the year » must be completed in the table on page 19. As we are dealing with a positive adjustment at origin , the box for Future decreases of Temporary corrections must be completed amount of 152,000 euros since this is the value of the future decrease box in the column " Outstanding balance at the end of the year" of the fiscal year 2021 , that is, the accumulated of 2020 and 2021.
Regarding the part corresponding to " Outstanding balance at the end of the year" , as it is a positive adjustment at source , the box must be completed future decreases of Temporary corrections in the amount of 128,000 euros (152,000 – 24,000) which is the outstanding balance at the beginning of the year reduced in the reverted amount of 24,000 euros in fiscal year 2022 . The form will transfer the completed information to box [02570] « Outstanding balance at the end of the year» on page 26 bis of form 200.
Detail of the corrections to the result of the profit and loss account (excluding the correction for IS ) (page 19 of model 200)
| Total | --- | 152,000 | --- | 24,000 | --- | 128,000 |
| Fiscal year 2022 tax corrections | Outstanding balance at beginning of year | Exercise corrections | Outstanding balance ending of fiscal year | |||
|---|---|---|---|---|---|---|
| Future increases | Future declines | Increases | Decreases | Future increases | Future declines | |
| Permanent fixes | --- | --- | --- | --- | --- | --- |
| Temporary corrections with origin in the year |
--- | 152,000 | --- | --- | --- | 128,000 |
| Temporary corrections originating in previous years |
--- | 24,000 | ||||
Detail table of the corrections to the result of the profit and loss account (excluding the correction by the IS) (page 26 bis to 26 e of model 200)
| Settings detail | Type (2020) | Outstanding balance at the beginning of the year | Exercise corrections | Outstanding balance at year-end | ||||
|---|---|---|---|---|---|---|---|---|
| Permanent | Temporary (origin during the year) | Temporary (origin in previous exercises ) | ||||||
| Differences between accounting amortization and tax amortization (art. 12.1 LIS) |
INCREASE | --- | --- | --- | --- | --- | ||
| Differences between accounting amortization and tax amortization (art. 12.1 LIS) |
DECREASE | [02569] 152,000 | --- | --- | [02568] 24,000 | [02570] 128,000 | ||
In the years from 2023 to 2027 , the adjustments will be the same as those set forth for 2022, with the difference that the « Outstanding balance at the end of the year” , in the Future decreases box of Temporary corrections , your amount will decrease in each fiscal year at a rate of 24,000 euros each year, until reaching 8,000 euros in 2027.
In fiscal year 2028 , in the Web Companies form, when box [00304] is to be completed The table on page 19 of model 200 will be displayed and the box for Decreases of « Temporary corrections originating in must be completed ##5##previous years" ##6##of the part of the table dedicated to " Corrections for the year" for the amount of 8,000 euros , since this is amount pending tax amortization . The form will transfer the completed information to box box [02568] « Temporary originating in previous years» on page 26 bis of form 200. On the other hand, with respect to the part corresponding to " Outstanding balance at the end of the year" , the Future decreases box must be completed in Temporary corrections amounting to 0 euros (8,000 – 8,000), since there is no outstanding balance due to the fact that in this year they have reversed the 8,000 euros remaining as outstanding balance in 2027. The form will show 0 in box [02570] « Outstanding balance at year-end » on page 26 bis of form 200.
Detail of the corrections to the result of the profit and loss account (excluding the correction by the IS) (page 19 of model 200)
| Total | --- | 8,000 | --- | 8,000 | --- | --- |
|
Fiscal year 2028 | Outstanding balance at beginning of year | Exercise corrections | Outstanding balance ending of fiscal year | |||
|---|---|---|---|---|---|---|
| Future increases | Future declines | Increases | Decreases | Future increases | Future declines | |
| Permanent fixes | --- | --- | --- | --- | --- | --- |
| Temporary corrections with origin in the year |
--- | 8,000 | --- | --- | --- | --- |
| Temporary corrections originating in previous years |
--- | 8,000 | ||||
Detail table of the corrections to the result of the profit and loss account (excluding the correction by the IS) (page 26 bis to 26 e of model 200)
| Settings detail | Type (2020) | Outstanding balance at the beginning of the year | Exercise corrections | Outstanding balance at year-end | ||||
|---|---|---|---|---|---|---|---|---|
| Permanent | Temporary (origin during the year) | Temporary (origin in previous exercises ) | ||||||
| Differences between accounting amortization and tax amortization (art. 12.1 LIS) |
INCREASE | --- | --- | --- | --- | |||
| Differences between accounting amortization and tax amortization (art. 12.1 LIS) |
DECREASE | [02569] 8,000 | --- | --- | [02568] 8,000 | [02570] 0 | ||