Negative income

Filling in form 200

In boxes [00225] and [00226] “Negative income (art. 11.9 and 11.10 LIS )” on page 12 of model 200 , The temporary imputation differences derived from the application of articles 11.9 and 10 of the LIS must be included:

article 11.9 of the LIS establishes that the negative income generated in the transmission of elements of material fixed assets, real estate investments, intangible fixed assets and securities representing debt, when the acquirer is an entity of the same group of companies according to the criteria established in article 42 of the Commercial Code, regardless of residence and the obligation to prepare consolidated annual accounts, will be allocated in the tax period in which said assets are derecognized from the balance sheet of the acquiring entity, are transferred to third parties outside the aforementioned group of companies, or when the transferring entity or the acquiring entity ceases to be part of it. However, in the case of amortizable assets, the negative income will be included, prior to said circumstances, in the tax periods that will remain from the useful life of the transferred elements, depending on the amortization method used with respect to the aforementioned elements. .

article 11.10 of the LIS establishes that the negative income derived from the transfer of securities representing the participation in the capital or own funds of entities, when the acquirer is an entity of the same group of companies according to the criteria established in article 42 of the Commercial Code, regardless of residence and the obligation to prepare consolidated annual accounts, they will be allocated in the tax period in which said assets are transferred to third parties outside the aforementioned group of companies, or when the transferring entity or the acquiring entity ceases to be part of it, reduced by the amount of the positive income obtained in said transfer to third parties, provided that, with respect to the transmitted values, the following circumstances occur:

• that, at no time during the year prior to the day on which the transfer occurs, the requirement established in article 21.1 a) of the LIS is met, and

• that, in the case of participation in the capital or equity of entities not resident in Spanish territory, in the tax period in which the transfer occurs, the requirement established in article 21.1 b) of the LIS is met.

The provisions of article 11.10 of the LIS will apply to the case of transfer of shares in a temporary union of companies or in forms of collaboration similar to these located abroad, but not to the extinction of the investee entity, unless it is a consequence of a restructuring operation or the exercise of the activity is continued under any other legal form.

Therefore, in the tax period in which the transfer of the assets or securities referred to in articles 11.9 and 10 of the LIS is carried out, the transferring entity must record in box [00225] of increases, the amount of negative income generated by said transfer that is not deductible for tax purposes. When in subsequent tax periods, the acquiring entity, with respect to said assets, derecognises them from the balance sheet of the acquiring entity, transfers them to third parties outside the aforementioned group of companies, or when the transferring entity or the acquiring entity ceases to form part of it, the acquiring entity will integrate the amount of these negative income into its tax base through a negative adjustment that will be included in box box [00226] of reductions.