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Practical Handbook for Companies 2021

B) Calculation of the payment by instalments:article 40.3 of the LIS

Box 04.Accounting result (after IS)

The result of the profit and loss account after corporation tax shall be entered in box [04].

Boxes 05 and 06.Correction for corporate income tax

In box [05], the amount corresponding to increases in the profit and loss account for income tax should be entered and in box [06] the amount corresponding to decreases should be entered.

Box 37.Reversal of 30 per cent of the amount of accounting depreciation costs (excluding small companies).

In box [37], the amount corresponding to the decreases due to the reversal of the adjustments made during the tax periods beginning in 2013 and 2014 by entities that are not considered to be small and which, as a result of the provisions of article 7 of Law 16/2012, of 27 December, had to record an increase in the profit and loss account, shall be entered in box [37].

In box [07], the amount corresponding to the total increases in the profit and loss account, except for the adjustment for corporate income tax, and in box [08], the amount corresponding to the decreases, except for the adjustment for corporate income tax and the reversal of the adjustment for the limitation of tax-deductible depreciations made in previous years, shall be entered.

Boxes 38 and 39.Total corrections to the accounting result

The totals of increases and decreases, respectively, for the above corrections, of boxes [05], [37] and [07], and [06] and [08] shall be entered in these boxes.

These are calculated amounts:

  • box [38] = box [05] + box [07].
  • box [39] = box [06] + box [37] + box [08].

Box 13.Previous tax base

It is an amount calculated using the following formula:

box [13] = box [04] + box [38] - box [39].

Box 44.Remaining capitalisation reserve not applied due to insufficient basis

Only taxpayers whose tax rate corresponds to that provided for in sections 1 or 6 of article 29 of the LIS, when the requirements provided for in article 25.1 of the LIS are met, and provided that it has not been possible to reduce the full 10 per cent of the increase in equity in the corporate income tax return (form 200), thus being able to apply the remainder pending due to insufficient tax liability of amounts corresponding to previous years, shall only enter this box.

In this respect, the reduction in the tax base of a given tax period relating to the capitalisation reserve corresponds to 10 per cent of the increase in equity, for the determination of which it is essential that the year end has occurred.This means that the application of the capitalisation reserve cannot be taken into account in the determination of the tax base applicable to the instalment payments, since the tax period will not have ended and the year-end will not have taken place, it will not have been possible to determine the possible increase in equity which would determine the reduction of the tax base.This can only be determined in the tax return for the corresponding tax period which, in accordance with Article 124.1 of the LIS, must be filed within 25 calendar days following the six months after the end of the tax period.

Consequently, the fractioned payments may not include a reduction for this item (capitalisation reserve) in the part of the tax base on the basis of which such fractioned payments are determined.On the other hand, a reduction may be shown for the capitalisation reserve, but corresponding to the amounts pending application of the reduction from previous years, which is what will appear in this box, as the remainder of the capitalisation reserve not applied due to insufficient base.

Box 14.Offsetting of tax losses from previous periods

The amount of tax losses from previous periods that are subject to offset for the purposes of this return shall be entered.Takes the value zero if box [13] - box [44] is negative or zero.

The offsetting of tax losses from previous periods is limited to 70 per cent of the taxable income prior to the application of the capitalisation reserve established in article 25 of the LIS and its offset.However, and as established in the fifteenth additional provision of the LIS, for taxpayers whose net turnover is at least 20 million euros during the 12 months prior to the date on which the tax period begins, the limits established in Article 11.12, in the first paragraph of Article 26.1, in letter e) of Article 62.1 and in letters d) and e) of Article 67 of the LIS shall 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.

In any case, negative tax bases can be offset during the tax period up to an amount of 1 million euros.

The aforementioned limitation on the offsetting of tax losses does not apply to the amount of the income corresponding to the write-offs and waivers resulting from an agreement with the taxpayer's creditors.The negative tax bases to be offset with said income will not be taken into consideration with respect to the 1-million-euro value referred to above.

Boxes 45 and 46.Equalisation reserve (art. 105 LIS) (only entities under art. 101 LIS)

The equalisation reserve is a tax incentive applicable to small entities (those whose turnover in the immediately preceding tax period is less than 10 million euros) that apply the tax rate provided for in the first paragraph of article 29.1 of the LIS.In this respect, the corrections to the accounting result do not include the amount corresponding to the equalisation reserve.

After the corrections to the accounting result, a preliminary taxable base is obtained, to which, where applicable, the remaining capitalisation reserve not applied due to insufficient base would be applied and subsequently the offsetting of tax losses would be carried out, and the taxable base is obtained, to which, where applicable, the equalisation reserve would be applied, which must be taken into account for the purposes of the instalment payments, as indicated in section 4 of article 105 of the LIS, and which may reduce or add to that taxable base.Thus, and provided that the requirements set out in article 105 of the LIS are met, the positive taxable income (provided that it does not exceed the amount of 1 million euros) may be reduced by up to 10 per cent of its amount.If the tax base is reduced, a reserve must be set aside out of the profit or loss for the year for the amount of the reduction.Thus, the amount of the reduction should be included in box [46].

These amounts shall be added to the tax base of the tax periods ending in the 5 years immediately following the end of the tax period in which the reduction is made, if the taxpayer has a negative tax base and up to the amount of the same.The addition amount is to be included in box [45].

Finally, it should be borne in mind that cooperative societies which, where applicable, meet the requirements for applying this tax incentive will not complete these boxes.It will be applied after the rate of taxation has been applied, and the amount of the tax must be converted into tax liability, depending on the corresponding rate of taxation.

Basis for payment by instalments

The basis for payment by instalments shall be that part of the taxable base for the first 3, 9 or 11 months of each calendar year determined in accordance with the rules laid down in this Law.Taxpayers whose tax period does not coincide with the calendar year shall make the instalment payment on the part of the tax base corresponding to the days elapsed from the start of the tax period until the day before the start of each of the instalment payment periods.