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Practical Handbook for Companies 2021

Foreign income tax on profits used to pay dividends with deductions for international double taxation

When the tax base of the taxpayer includes dividends or shares in profits paid by an entity not resident in Spanish territory and subject to the deduction to avoid international double taxation established in article 32.1 of the LIS, to which the taxpayer is entitled, the amount corresponding to the foreign tax effectively paid by said entity not resident in Spanish territory on the profits out of which said dividends have been paid, should be included in the box [00351] "Foreign tax on profits out of which dividends subject to deduction for international double taxation (art. 32.1 LIS) are paid" on page 13 of form 200, as an increase correction, regardless of whether or not the taxpayer applies the aforementioned deduction.