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Practical Manual for Companies 2020.

Example

Entity "Z" in the tax period beginning on or after January 1, 2016, has impairment losses on securities representing participation in the capital or equity of entities generated in tax periods beginning before January 1, 2013 pending reversal, in accordance with the provisions of the sixteenth transitional provision of the LIS :

Tax period 1

We assume that in the tax period beginning on or after 1 January 2016, entity “Z” has pending provisions to be reversed amounting to 300 euros and that the amount of the reversal by application of DT 16.1 of the LIS is 40 euros, therefore it must complete the section “Reversal of impairment losses on securities representing participation in the capital or equity of entities pending reversal (DT 16 LIS)” on page 20 bis of form 200, as follows:

  • Column "Number of tax periods": 1

  • Column "Provisions pending integration at the beginning of the period" (box [01515]): 300 euros

  • Block "Provisions included in this settlement":

    • Column "DT 16.1 and 2 LIS" (box [01516]): 40 euros

    • Column «DT 16.3 LIS» (box [01585]): 20 euros

      In this case, the reversal amount by application of DT 16.1 of the LIS is less (40 euros) than the minimum reversal amount established in DT 16.3 of the LIS (300/5 = 60 euros), so entity "Z" will record the minimum reversal amount (60 euros) in the manner indicated in this block.

    • Column "Provisions pending integration in future periods" (box [01517]): 240 euros

      In this column, entity "Z" will record the amount of 240 euros that remains to be reversed in the following 4 periods, after subtracting the amount of the provisions pending integration at the beginning of the period (300 euros) from the amount integrated in the settlement (60 euros).

Tax period 2

Continuing with the previous example, entity "Z" has pending reversal provisions at the beginning of this period for an amount of 240 euros and we assume that the amount of the reversal by application of DT 16.1 of the LIS in this period is 100 euros, so it must complete the aforementioned reversal section on page 20 bis of form 200, as follows:

  • Column "Number of tax periods": 2

  • Column "Provisions pending integration at the beginning of the period" (box [01515]): 240 euros

  • Block "Provisions included in this settlement":

    • Column "DT 16.1 and 2 LIS" (box [01516]): 100 euros

    • Column «DT 16.3 LIS» (box [01585]): 0 euros

      In this case, the reversal amount due to the application of DT 16.1 of the LIS is higher (100 euros) than the minimum reversal amount established in DT 16.3 of the LIS (300/5 = 60 euros), so entity "Z" will record the amount of 100 euros in the manner indicated in this block.

    • Column "Provisions pending integration in future periods" (box [01517]): 140 euros

      In this column, entity "Z" will record the amount of 140 euros that remains to be reversed in the following 3 periods, after subtracting the amount of the provisions pending integration at the beginning of the period (240 euros) from the amount integrated in the settlement (100 euros).

Tax period 3

Following the previous example, entity "Z" has pending reversal provisions at the beginning of this period for an amount of 140 euros and we assume that the amount of the reversal by application of DT 16.1 of the LIS in this period is 0, so it must complete the aforementioned reversal section on page 20 bis of form 200, as follows:

  • Column "Number of tax periods": 3

  • Column "Provisions pending integration at the beginning of the period" (box [01515]): 140 euros

  • Block "Provisions included in this settlement":

    • Column "DT 16.1 and 2 LIS" (box [01516]): 0 euros

    • Column «DT 16.3 LIS» (box [01585]): 46.67 euros

      To complete this box, entity "Z" must take into account the provisions of the second paragraph of DT 16.3 of the LIS, according to which in the event that a higher amount has been reversed by application of the provisions of sections 1 or 2 of this provision, the remaining balance will be integrated in equal parts between the remaining tax periods. That is, 140/3 = 46.67 euros.

    • Column "Provisions pending integration in future periods" (box [01517]): 93.33 euros

      In this column, entity "Z" will record the amount of 93.33 euros that remains to be reversed in the following 2 periods, after subtracting the amount of the provisions pending integration at the beginning of the period (140 euros) from the amount integrated in the settlement (46.67 euros).

According to this example, the table "Reversal of impairment losses on securities representing participation in the capital or equity of entities pending reversal (DT 16 LIS)" on page 20 bis of form 200 would be completed as follows:

Tax period number
Pending integration provisions
at the beginning of the period		Provisions included in this liquidationPending integration provisions
in future periods
DT 16 1 and 2DT 16.3 LIS
1 [01515] 300 [01516] 40 [01585] 20 [01517] 240
2 [01515] 240 [01516] 100 [01585] 0 [01517] 140
3 [01515] 140 [01516] 0 [01585] 46.67 [01517] 93.33