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Practical Manual of Companies 2020.

First application of Banco de España Circular 4/2017 concerning credit entities

For tax periods beginning on or after January 1, 2018, Royal Decree-Law 27/2018 modifies LIS with the aim of introducing the effects of of Circular 4/2017, of November 27 , of the Bank of Spain, to credit institutions.

The charges and credits to reserve accounts that are generated on the occasion of the adjustments of the first application of Circular 4/2017 will have tax effects, when appropriate due to the application of the tax regulations, so they must be integrated into the taxable base of the Tax corresponding to the tax periods beginning on or after January 1, 2018.

For these purposes, in the second paragraph of article 17.1 of the LIS it is established that the variations in value caused by the application of the fair value criterion will not have tax effects as long as they must not be attributed to the account. of losses and profits, without prejudice to what is stated in letter l) of article 15 of this Law, or as long as they must not be attributed to a reserve account if this is established by a legal or regulatory norm.

In this way, a transitional regime has been established in the thirty-ninth transitional provision of the LIS to integrate into the tax base those charges and credits on account of reserves that are considered expenses and income, respectively, derived from the first application of Circular 4/2017, of November 27, as soon as they have tax effects, so that said integration will be carried out in equal parts in the tax base corresponding to each of the three first tax periods that begin on or after January 1, 2018.

Filling in form 200

These entities must make in boxes [02129] and [02130] «Adjustments for the first application of Circular 4/2017 of the Bank of Spain, to credit institutions ( DT 39 LIS) » on page 13 of model 200, the adjustments derived from the first application of Circular 4/2017:

  • In box [02129] entities must enter the amount corresponding to the integration of the charges derived from that first application.

  • In box [02130] the entities must enter the amount corresponding to the integration of the credits derived from that first application.