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Practical Manual of Companies 2020.

Temporary positive adjustments originating in previous financial years

In the event that the taxpayer has to make a correction to the result of the Profit and Loss Account that involves a temporary positive correction originating from previous years, when completing the corresponding box on pages 12 and 13, it will be displayed simultaneously in the Companies web form the breakdown table “Details of the corrections to the result of the profit and loss account (excluding the correction for Corporate Tax)” on page 19 of form 200. 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 Increases of « Temporary corrections originating in previous years » of the part of the table dedicated to « Exercise corrections» . Likewise, the box for Future increases of Temporary corrections in the columns corresponding to " Outstanding balance at the beginning of the year" must be completed. and « Outstanding balance at year-end» because the negative adjustment at source is reversed through positive extra-accounting adjustments, which means future increases in the tax base . As for the Future increases box in the column « Outstanding balance at the beginning of the financial year » , it must be completed by the himself amount that was entered in the box Future increase 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 box for future increases 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 fiscal year» the box for Future increases of Temporary corrections will decrease in value with respect to the Balance of the fiscal year above in the amount of the positive correction for this year. With all this, 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 increases, it tells us that this amount is being reversed through positive extra-accounting adjustments.

Example

Starting from the example posed in the case of negative temporary correction originating in the year, we continue with the years 2022, 2023 and 2024.

The Joint Stock Company "D", which in 2020 meets the requirements for the application of tax incentives for small companies, acquires a computer, making it available and coming into operation on July 1, 2020, all for a amount of 6,000 euros. It is estimated that the residual value of the element is insignificant, so the amortizable value coincides with the acquisition price.

The company decides to carry out the accounting depreciation of the computer according to its estimated technical depreciation, which is the result of applying a coefficient of 25%. The entity also decides to carry out the tax-deductible amortization of the computer by applying the multiplier coefficient of 2 referred to in article 103 of the LIS .

The financial year of the entity coincides with the calendar year. The tax-deductible amortization in fiscal year 2022 will be as follows:

  • Maximum coefficient applicable to the computer according to the officially approved amortization tables: 25%.
  • Application of the multiplier coefficient: 2 x 25% = 50%.
  • Accelerated amortization that could be practiced: 6,000 x 50% = 3,000 euros.
  • Deductible tax amortization: 1,500 euros (this is the value of the asset pending tax amortization)
  • The accounting amortization carried out by Company "D" in fiscal year 2022 will be as follows:

    6,000 x 25% = 1,500 euros

Decrease in the result of the profit and loss account to be recorded in box [00314]: 1,500 – 1,500 = 0 euros

Therefore, in fiscal year 2020 and following , the corrections to be made in boxes [00313] and [00314] “Differences between accounting and tax amortization (art. 12.1 LIS)” on page 12 of model 200 will be:

Financial yearTax amortizationAccounting amortizationCorrectionsForm 200Balance at year-end
+-
2020 6,000 x 0.5 x 50% = 1,500 6,000 x 0.5 x 25% = 750 --- 750 [00314] 750
2021 6,000 x 50% = 3,000 6,000 x 25% = 1,500 --- 1,500 [00314] 2,250
2022 Rest of active value = 1,500 6,000 x 25% = 1,500 --- --- --- 2,250
2023 --- 6,000 x 25% = 1,500 1,500 --- [00313] 750
2024 --- Rest active value = 750 750 --- [00313] 0

Total tax amortization = 1,500 + 3,000 + 1,500 = 6,000

Total accounting amortization = 750 + 1,500 + 1,500 + 1,500 + 750 = 6,000

In the Web Companies form, in fiscal year 2022 , no off-the-books adjustment will be made because the accounting amortization coincides with the tax amortization. In 2022 box [00314] will not be completed but it must be verified that the « Outstanding balance at the end of the year" is correct , to do this you must go to the box [00314] and the table on page 19 of form 200 will be displayed and you must check that the box Future increases of Temporary corrections of the part corresponding to Outstanding balance at the beginning and end of the year , has a value of 2,250 euros , which is the accumulated balance of 2020 and 2021.

In fiscal year 2023 the tax adjustments will be as follows:

  • Deductible tax amortization: 0 euros (because the asset is already fiscally depreciated)
  • The accounting amortization carried out by Company "D" in fiscal year 2023 will be as follows:

    6,000 x 25% = 1,500 euros

Increase in the result of the profit and loss account to be entered in box [00313]: 1,500 euros

In the Web Companies form, in fiscal year 2023 , when the box [00313] is to be completed, the table on page 19 of form 200 will be displayed and the box must be completed Increases ##2##of « Temporary corrections originating from previous years» of the part of the table dedicated to « Corrections of the year» for the amount of 1,500 euros. The form will transfer the information to box [03193] “Temporary from previous years” on page 26d of form 200.

Likewise, the part corresponding to " Outstanding balance at the beginning of the year" must be completed, as we are dealing with a negative adjustment at source , the box must be completed of Future increases of Temporary corrections for the amount of 2,250 euros since this is the value in the Future Increase box in the "Outstanding balance at the end of the year" column for fiscal year 2022, that is, the accumulated of 2020, 2021 and 2022.

Regarding the part corresponding to " Outstanding balance at the end of the year" , as it is a negative adjustment at source , the box must be completed Increases future of Temporary corrections worth 750 euros (2,250 – 1,500), which is the outstanding balance at the beginning of the year less by the reverted amount of 1,500 euros in 2023. The form will transfer the completed information to box box [03194] “Outstanding balance at the beginning of the year” on page 26d 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 2,250 --- 1,500 --- 750 ---
Fiscal year 2023
tax corrections
Outstanding balance at
beginning of year
Exercise correctionsOutstanding balance ending
of fiscal year
Future increasesFuture declinesIncreasesDecreasesFuture increasesFuture declines
Permanent fixes --- --- --- --- --- ---
Temporary corrections with origin
in the year
2,250 --- --- --- 750 ---
Temporary corrections originating
in previous years
1,500 ---

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 detailType
(2020)
Outstanding balance
at the beginning of the year
Exercise correctionsOutstanding balance
at year-end
PermanentTemporary
(origin during the year)
Temporary
(origin in previous exercises
)
Small companies: accelerated amortization
(art. 103 LIS and DT 28 LIS)
INCREASE [03194] 2,250 --- --- [03193] 1,500 [03195] 750

In fiscal year 2024 the tax adjustments will be as follows:

  • Deductible tax amortization: 0 euros (because the asset is already fiscally depreciated)
  • The accounting amortization carried out by Company "D" in fiscal year 2024 will be 750 euros because it is the value of the asset pending accounting amortization.

Increase in the result of the profit and loss account to be entered in box [00313]: 750 euros

In the Web Companies form, in fiscal year 2024, when the box [00313] is to be completed, the table on page 19 of form 200 will be displayed and the Increases box must be completed. Temporary corrections originating from previous years» of the part of the table dedicated to « Corrections for the year» in the amount of 750 euros . The form will transfer the completed information to box box [03193] “Temporary originating from previous years” on page 26d of form 200.

Likewise, the part corresponding to " Outstanding balance at the beginning of the year" must be completed, as we are dealing with a negative adjustment at source , the box must be completed of Future increases of Temporary corrections in the amount of 750 euros , since this is the value in the future increase box in the Outstanding balance column at the end of the fiscal year for fiscal year 2023.

On the other hand, with respect to the part corresponding to " Outstanding balance at the end of the year" , the box for future increases of must be completed Temporary corrections worth 0 euros ##3##(750 - 750), since there is no outstanding balance due to the fact that in this year they have reversed the 750 euros that remained as an outstanding balance at the beginning of This exercise. The form will show 0 in box [03195] “Outstanding balance at year-end” on page 26d 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 750 --- 750 --- --- ---
Fiscal year 2024
tax corrections
Outstanding balance at
beginning of year
Exercise correctionsOutstanding balance ending
of fiscal year
Future increasesFuture declinesIncreasesDecreasesFuture increasesFuture declines
Permanent fixes --- --- --- --- --- ---
Temporary corrections with origin
in the year
750 --- --- --- --- ---
Temporary corrections originating
in previous years
750 ---

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 detailType
(2020)
Outstanding balance
at the beginning of the year
Exercise correctionsOutstanding balance
at year-end
PermanentTemporary
(origin during the year)
Temporary
(origin in previous exercises
)
Small companies: accelerated amortization
(art. 103 LIS and DT 28 LIS)
INCREASE [03194] 750 --- --- [03193] 750 [03195] 0