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Practical Manual of Companies 2020.

Payment for converting deferred tax assets into credit payable to the Tax Agency

According to the provisions of article 130.1 of the LIS , deferred tax assets corresponding to provisions for impairment of credits or other assets derived from possible insolvencies of debtors not related to the taxpayer , not owed to public law entities and whose deductibility does not occur by application of the provisions of article 13.1.a) of this Law, as well as those derived from the application of sections 1 and 2 of article 14 of this Law, corresponding to endowments or contributions to social security systems and, where applicable, early retirement, may be converted into a claim payable to the Tax Administration, for an amount equal to the positive liquid quota corresponding to the tax period of generation of those . However, when the amount of the positive net amount of a given tax period is greater than the amount of the deferred tax assets generated in the same referred to in the previous paragraph, the entity may have the right provided for in this article, for an amount equal to the excess, with respect to those assets of the same nature generated in previous tax periods or in the 2 subsequent tax periods.

For the conversion mentioned in the previous section to occur, any of the circumstances listed in article 130.2 of the LIS must occur:

  1. That the taxpayer records accounting losses in its annual accounts, audited and approved by the corresponding body.

  2. That the entity is subject to liquidation or judicially declared insolvency.

The conversion of the deferred tax assets into a claim payable to the Tax Administration will occur , as established in article 130.3 of the LIS , at the time of the presentation of the self-assessment of the Corporate Income Tax corresponding to the tax period in which the circumstances have occurred described in article 130.2 of the LIS.

According to the provisions of article 130.4 of the LIS, entities that convert the deferred tax assets referred to in the previous paragraph into a claim payable to the Tax Administration may choose to request their payment to the Tax administration following the procedure established in article 69 of RIS .

Filling in form 200

If the entity chooses to request payment of the credit due from the Tax Administration, it must enter said amount in box [00150] "Credit for conversion of deferred tax assets into credit due from the Tax Administration ( art. 130 LIS)» on page 14 bis of model 200:

  • In the event that the entity pays taxes exclusively to the State Administration, it must enter the amount in box [01020] «Credit for conversion of deferred tax assets into credit payable to the Tax Administration (art. 130 LIS) (State)». In this case, the amount in box [01020] will match that in box [00150].

  • In the event that the entity pays taxes to one or more Provincial Councils of the Autonomous Community of the Basque Country and/or Navarra Foral Community, it must enter the amount in box [01043] «Credit for conversion of assets by deferred tax in credit payable before the Tax Administration (art. 130 LIS) (D. Forales/Navarra)» . This box will be completed on page 26 of form 200.