Corporation Tax adjustments

The need to apply this correction in boxes [ ] and [00302] "Corrections for Corporate Tax" on page 12 of form 200 is imposed by the different consideration that accounting and tax regulations have on Corporate Tax rates. Thus, the accounting standard considers that the amount of the Corporate Tax quota will be computed in the profit and loss account as an expense or income item, depending on whether the account or set of accounts representing said concept has a debit or credit balance, respectively.

However, article 15.b) of the LIS establishes that the expenses derived from the accounting of the Corporate Tax are not tax deductible and that expenses derived from said accounting are not considered income.

Filling in form 200

• In box [00326] on page 8 "Profit and loss account" of said model, it refers to "Taxes on profits", so in addition to Corporate Tax, it may include taxes on profits obtained abroad, such as those that tax income obtained abroad through a permanent establishment, those that tax income obtained abroad without a permanent establishment, or taxes that particularly tax dividends or shares in profits of foreign companies.

• The amount entered in box [00328] "Result of the year from discontinued operations net of taxes" will correspond to a portion of the Corporate Tax quota not included in the aforementioned box [00326] .

Therefore:

• From the amount entered in box [00326] and considering the positive or negative sign attributable to it, the taxes on profits obtained abroad (with their sign) must be algebraically subtracted. At the same time, the portion of the Corporate Tax (with its sign) corresponding to the result of the year from discontinued operations net of taxes will be added algebraically to said amount (with its sign).

• If after carrying out the aforementioned algebraic addition and subtraction operations on the aforementioned amount in box [00326] , the resulting amount is:

  • Positive , the Corporate Tax rate that this resulting amount represents will have been considered as additional income as it is a credit in favor of the taxpayer. In this way, in box [00302] on page 12 of the model settlement, this amount must be included as a decrease in the result of the profit and loss account.

  • Negative , the Corporate Tax rate that it represents will have been considered as an accounting expense. In this way, in box [00301] on page 12 of the model settlement, this amount must be included as an increase to the result of the profit and loss account.

    In any case, the aforementioned algebraic operations carried out on the amount entered in box [00326] must only be carried out for the purpose of correcting boxes [00301] and [00302].

  Keep in mind:

  Finally, it should be noted that references to box [00326] made in this section should be understood as being made to the following boxes:

  • Box [00258] on page 30 of the form, when dealing with entities required to keep their accounting records in accordance with the regulations of the Bank of Spain.

  • Box [00379] on page 40 of the model, for insurance entities to which the Accounting Plan approved by Royal Decree 1317/2008 and modified by Royal Decree 1736/2010 is mandatory.

  • Box [00242] on page 46 of the model, in the case of collective investment institutions, with the application of Circular 3/2008, of September 11, of the National Securities Market Commission, as well as in the case of other entities that apply the accounting model established in that Circular.

  • Box [00193] on page 51 of the form, for mutual guarantee companies.