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Practical Manual of Companies 2020.

Exceptions to limiting the offsetting of negative tax bases

The limitation on the compensation of tax bases that we have referred to in the previous section will not apply in the following cases:

  • In any case, may be offset in the tax period negative tax bases up to the amount of 1 million euros .

    In the event that the tax period had a duration of less than year , the negative tax bases that may be offset in the tax period, as established in the previous paragraph, will be the result of multiplying 1 million euros by the proportion between the duration of the tax period compared to the year.

  • The limitation on the compensation of negative tax bases will not be applicable to the amount of income corresponding to write-offs or waits as a result of an agreement with creditors not related to the taxpayer .

    Keep in mind:

    The negative tax bases that are offset with said income will not be taken into consideration with respect to the amount of 1 million euros referred to above.

  • This limitation will not apply either in the tax period in which the extinction of the entity occurs, unless it is a consequence of a restructuring operation to which the special tax regime applies. established in Chapter VII of Title VII of this Law.

    To take into account :

    Entities that do not apply the limit established for the compensation of negative tax bases as provided in the previous paragraph, must mark box [00072] “Extinction of the entity” on page 1 of form 200 in the tax period subject to declaration in which its extinction occurs.

  • In the case of newly created entities referred to in article 29.1 of the LIS , the limitation on the compensation of tax bases will not apply in the first 3 tax periods in which a positive tax base is generated prior to its compensation.

    Keep in mind:

    These newly created entities that do not apply the limit established for the compensation of negative tax bases as provided in the previous paragraph, must mark box [00070] «Compensation of negative tax bases for newly created entities (art. . 26.3 LIS)» on page 1 of model 200.

  • Finally, this limitation will not apply to the amount of income corresponding to the reversal of impairment losses that are integrated into the tax base by application of the provisions of the transitional provision. eighth of the LIS, provided that the impairment losses deducted during the tax period in which the negative tax bases that are intended to be compensated were generated had represented, at least, 90 percent of the deductible expenses for said period.

    In the event that the entity had negative tax bases generated in several periods beginning before January 1, 2013 , this requirement may be met by the aggregate calculation of all the deductible expenses of said tax periods.