Impairment losses arising from possible insolvency of debtors (art. 13.1 LIS) not affected by article 11.12 or TD 33.1 of the LIS

When there is a risk in the collection of a certain debt, entities are accounting obligated to make a provision for debtor insolvency.

On the other hand, article 13.1 of the LIS establishes that only losses due to impairment of assets will be tax deductible credits derived from possible insolvencies of debtors when any of the following circumstances occur at the time of accrual of the tax:

That six months has passed since the obligation fell due.
That the debtor is declared to be in bankruptcy proceedings.
That the debtor is prosecuted for the crime of confiscation of assets
That the obligations have been claimed by the courts or are in litigation or arbitration proceedings, the solution of which depends on their collection.

However, even if the above circumstances occur, will not be tax deductible :

Those corresponding to credits owed by public law entities, unless they are the subject of an arbitration or judicial procedure regarding their existence or amount.
Those corresponding to credits owed by related persons or entities, unless they are in bankruptcy and the liquidation phase has been opened by the judge, in the terms established in Law 22/2003, of July 9, Bankruptcy. .
Those corresponding to global estimates of the risk of insolvencies of clients and debtors.

New:

With effects for the tax periods that begin in 2020 and in 2021 , Royal Decree-Law 35/2020, of December 22, on urgent measures to support the sector tourism, hospitality and commerce and in tax matters, establishes in its article 14 that taxpayers of Corporate Tax that meet the conditions of article 101 of the LIS to be considered small companies, may deduct , in said periods, the losses due to deterioration of credits derived from the possible insolvencies of debtors when three months have elapsed since the maturity of the obligation referred to in letter a) of article 13.1 of the LIS.

In this way, for small companies, the period established to be able to deduct losses due to deterioration of credits derived from possible insolvencies of debtors is reduced in these periods, going from 6 months to 3 months, the time that is required has elapsed between the expiration of the obligation and the accrual of the tax.

Filling in form 200

These differences in criteria between the accounting standard and the tax standard determine the need to make a series of adjustments in boxes [00321] and [00322] «Losses due to impairment of art. 13.1 LIS not affected by art. 11.12 LIS nor by DT 33.1 LIS» on page 12 of model 200:

In box [00321] of increases, the taxpayer will include the amount of the losses due to impairment of value of the credits derived from the possible insolvencies of debtors accounted for in the tax period being declared, which are not tax deductible according to the provisions of article 13.1 of the LIS.
On the other hand, the taxpayer will include in the box [00322] of decreases the amount of those losses recorded in the period in which they are tax deductible for complying with the requirements of article 13.1 of the LIS.
recovery of value of the impairment ##2##, the taxpayer must include in box [00322] the amount corresponding to said reversal.

Keep in mind:

In these boxes [00321] and [00322] «Losses due to deterioration of art. 13.1 LIS not affected by art. 11.12 LIS nor by DT 33.1 LIS» only the amounts related to losses due to impairment of credits of article 13.1 of the LIS should appear, provided that they are not affected by the provisions article 11.12 of said standard , in which case they must be declared according to the provisions of the following section ( boxes [00415] and [00211] «Losses due to deterioration of article 13.1 LIS and provisions and expenses (arts. 14.1 and 14.2 LIS) to which art. 11.12 and DT 33.1 LIS») .