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 Corporate Tax will be recorded in box [04].

Boxes 05 and 06. Correction for corporate tax

In box [05] the amount corresponding to the increases in the profit and loss account result for Income Tax will be recorded, and in box [06] the amount corresponding to the decreases.

Box 37. Reversal of 30 percent of the amount of accounting depreciation expenses (excluding small companies)

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 small in size and that, as a result of the provisions of article 7 of Law 16/2012, of December 27, had to record an increase in the result of the profit and loss account, will be recorded in box [37].

In box [07] the amount corresponding to the total increases to the result of the profit and loss account, except for the correction for corporate tax, will be recorded, and in box [08] the amount corresponding to the decreases, except for the correction corresponding to corporate tax and the reversal of the adjustment for the limitation of tax-deductible amortizations made in previous years.

Boxes 38 and 39. Total corrections to accounting results

These boxes will contain the total increases and decreases, respectively, due to the previous corrections, in boxes [05], [37] and [07], and [06] and [08].

These are calculated amounts:

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

Box 13. Previous Taxable Base

It is an amount calculated using the following formula:

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

Box 44. Remaining capitalization reserve not applied due to insufficient base

Only taxpayers whose tax rate corresponds to that provided for in sections 1 or 6 of article 29 of the LIS will enter this box, when the requirements provided for in article 25.1 of the LIS are met, and provided that the entire 10 percent of the increase in equity could not be reduced in the Corporation Tax return (form 200), thus being able to apply the outstanding balance due to insufficient quota of amounts corresponding to previous years.

In this sense, the reduction in the tax base of a given tax period relative to the capitalization reserve corresponds to 10 percent of the increase in equity, for which determination it is essential that the fiscal year has closed. This means that the application of the capitalisation reserve cannot be taken into account when determining the tax base applicable to the fractional payments, since the tax period will not have concluded and the year-end closing will not have taken place, it will not have been possible to determine the possible increase in equity that would determine the reduction of the tax base. This can only be determined in the declaration for the corresponding tax period which, in accordance with article 124.1 of the LIS, must be submitted within 25 calendar days following the 6 months after the conclusion of the tax period.

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

Box 14. Offsetting negative tax bases from previous periods

The amount of negative tax bases from previous periods that are subject to offset for the purposes of this declaration shall be recorded. Takes the value zero if box [13] – box [44] is negative or zero.

The offsetting of negative tax bases from previous periods is limited to 70 percent of the tax base prior to the application of the capitalization reserve established in article 25 of the LIS and its offsetting. 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 will be replaced by the following:

50 percent, when in the referred 12 months the net amount of the turnover is at least 20 million euros but less than 60 million euros.
25 percent, when the net turnover in the referred 12 months is at least 60 million euros.

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

The limitation on the offsetting of negative tax bases indicated above will not apply to the amount of income corresponding to reductions and deductions 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. Leveling reserve (art. 105 LIS) (only entities of 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 regard, the amount corresponding to the levelling reserve is not included in the corrections to the accounting result.

Following the corrections to the accounting result, a prior taxable base is obtained, on which the remaining capitalisation reserve not applied due to insufficient base would be applied, where appropriate, and subsequently the offset of negative tax bases would be carried out, and the taxable base is obtained, on which, where appropriate, the levelling reserve would be applied, which must be taken into account for the purposes of fractional 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 tax base (provided that it does not exceed the amount of 1 million euros) may be reduced by up to 10 percent of its amount. In the event of a reduction in the tax base, a reserve must be created against the positive results of the year for the amount of said reduction. Thus, the amount of reduction must be included in box [46].

These amounts will be added to the tax base of the tax periods that end in the 5 years immediately following the end of the tax period in which said reduction is made, if the taxpayer has a negative tax base and up to the amount thereof. The additional amount must be included in box [45].

Finally, it should be noted that cooperative societies that, where applicable, meet the requirements to apply this tax incentive will not complete these boxes. It will be applied after applying the tax rate, and it will be necessary to convert the amount to a quota, depending on the corresponding tax rate.

Basis of split payment

The basis for the split payment will be the portion of the taxable base for the period of the first 3, 9 or 11 months of each calendar year determined according to the rules provided for in this Law. Taxpayers whose tax period does not coincide with the calendar year will make the fractional payment on the part of the tax base corresponding to the days elapsed from the beginning of the tax period until the day before the beginning of each of the periods of payment of the fractional payment.