Skip to main content
Practical Handbook for Companies 2021

Compensation of dues for cooperative losses

Regulation:Article 24 Law 20/1990

In relation to the offsetting of losses from previous tax periods, it should be noted that cooperative societies in application of their special tax regime do not offset tax losses under the terms of Article 26 of the LIS, but rather losses from previous tax periods.

A tener en cuenta:

In this way, the cooperative societies shall not enter any item in box [00547] "Compensation of negative tax bases for previous periods" on page 13 of form 200 for compensation of losses, but that the compensation of the aforementioned negative tax bases shall be made in box [00561] "Compensation of tax bases for losses of cooperatives" on page 14 of form 200.

1.Limits to the offsetting of negative quotas

With regard to the quantitative limits for the offsetting of negative tax payments, Article 24.1 of Law 20/1990 establishes that if the algebraic sum of the amounts resulting from applying the corresponding tax rates to the tax bases, whether positive or negative, is negative , the amount may be offset by the cooperative against the full positive tax payments of the following tax periods, taking into account the following limits :

  • Cooperative companies whose net turnover is less than 20 million euros during the 12 months prior to the start of the tax period may offset negative tax losses up to a limit of 70 per cent of the gross tax payable prior to offsetting.

  • Cooperative companies whose net turnover is at least 20 million euros during the 12 months prior to the start of the tax period, the eighth additional provision of Law 20/1990 establishes that the limit of 70 per cent of Article 24.1 of the aforementioned Law 20/1990, will be replaced by the following:

    • 50 per cent, if the net turnover in the 12 months in question is at least EUR 20 million but less than EUR 60 million.

    • 25 per cent, if the net turnover in the 12 months in question is at least EUR 60 million.

The limitation on the offsetting of tax losses does not apply to the amount of income corresponding to write-offs and waivers as a result of an agreement with creditors who are not related to the taxpayer.

In any case,, full tax payments will be compensable in the tax period for the amount resulting from multiplying 1 million euros by the average tax rate of the entity, whatever the net turnover.

With regard to the time limit for offsetting negative tax losses, negative full tax losses may be offset against positive full tax losses in subsequent tax periods without any time limit.

2.Checking the Administration

Pursuant to Article 24.1 of Law 20/1990, the Administration's right to check negative tax losses offset or pending offset shall expire after 10 years as from the day following the end of the period established for filing the corporate income tax return corresponding to the tax period in which the right to apply the tax loss carryforward arose.

Once this period has elapsed, the co-operative society must accredit the negative quotas for which it is seeking compensation, by presenting the tax return and the accounts, with proof of their deposit during the aforementioned period at the Companies Registry.

3.Completion of form 200 (page 22)

The box [00561] "Compensation of quotas for losses of cooperatives" on page 14 of form 200 shall be completed exclusively when the reporting entity is a cooperative society whose previous full tax liability for the financial year (box [00560]) is positive, provided that it has pending compensation of any previous full tax liability of a negative sign from previous financial years and it is decided to compensate it, totally or partially, in this tax return.

A tener en cuenta:

For the tax periods starting on or after 1 January 2019, information on the net turnover for the twelve months prior to the start date of the tax period must be included on page 21 of form 200 , for the purposes of determining the application of the limits on the offsetting of negative contributions due to losses of cooperatives under the terms provided for in article 24.1 of Law 20/1990.

For this purpose, when completing the box [00561] a breakdown window will open (except in cases where the table on page 21 of form 200 has already been completed), in which the taxpayer must indicate whether the net turnover during the twelve months prior to the start date of the tax period has been less than 20 million euros, at least 20 million euros, but less than 60 million euros or at least 60 million euros.The option marked by the taxpayer shall be transferred to the table "Net turnover for the twelve months prior to the date of commencement of the tax period" on page 21 of Form 200.

The option marked by the taxpayer will also be taken into account for to determine the limits in the calculation of the accounting adjustments derived from the application of article 11.12 of the LIS, the offsetting of tax losses and deductions for double taxation, so that once the table on page 21 of form 200 has been completed, it will not be shown again on other screens.

The amount to be entered in box [00561] will be the amount resulting from filling in the breakdown table "Details of compensation of quotas" on page 22 of form 200.

In this table, the cooperative societies should detail for each year from which the negative contributions originate, the amount to be offset.

To be taken into account:

The total of the column "Applied in this settlement" shown in box [00561] of the breakdown table "Details of offsetting of quotas" on page 22 of form 200, shall be transferred to box [00561] on page 14 of that form.

The amount in box [00561] "Compensation of quotas for losses of cooperatives" may in no case exceed the positive amount shown in box [00560] "Previous full amount".

In application of the above, in the box [00561] "Compensation of quotas for cooperative losses" on page 14 of form 200, the cooperative societies must enter the total amount of the quotas compensated in this settlement, taking into account the following limits:

  • When in the 12 months prior to the date on which the tax period begins the net turnover is less than 20 million euros, cooperative societies must apply the limit of 70 per cent on the result of subtracting the income corresponding to the reversal of impairments (box [00560]) from the previous gross tax liability (box [01510]).The result of this operation shall be added to box [01510] to obtain the amount to be entered in box [00561] "Compensation of quotas for losses of cooperatives":

    Box [00561] = 70% x (box [00560] + box [00210] - box [00480] + box [00408] - box [01037] - box [01510]) + (box [01510])
  • When in the 12 months prior to the date on which the tax period begins the net turnover is at least 20 million euros but less than 60 million euros, cooperative societies must apply the limit of 50 per cent on the result of subtracting from the previous gross tax liability (box [00560]), the income corresponding to the write-offs due to agreement with unrelated creditors (box [00593]) and the reversal of impairments (box [01510]).The result of this operation shall be added to boxes [00593] and [01510] to obtain the amount to be entered in box [00561] "Compensation of quotas for losses of cooperatives":

    Box [00561] = 50% x (box [00560] + box [00210] - box [00480] + box [00408] - box [01037] - box [00593] - box [01510]) + (box [01510] + box [01593])
  • When in the 12 months prior to the date on which the tax period begins the net turnover is at least 60 million euros, cooperative societies must apply the limit of 25 per cent on the result of subtracting from the previous gross tax liability (box [00560]), the income corresponding to the write-offs due to agreement with unrelated creditors (box [00593]) and the reversal of impairments (box [01510]).The result of this operation shall be added to boxes [00593] and [01510] to obtain the amount to be entered in box [00561]:

    Box [00561] = 25% x (box [00560] + box [00210] - box [00480] + box [00408] - box [01037] - box [00593] - box [01510]) + (box [01510] + box [00593])

Remember:

In any case, will be compensable in the tax period full tax payments for the amount resulting from multiplying 1 million euros by the average tax rate of the entity, whatever the net turnover.