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Practical Handbook for Companies 2021

Tax system for communities holding the title of communal woodlands

In accordance with the provisions of article 112 of the LIS, the amount of the profits for the year that the communities owning local common land forests (Chapter XV of Title VII LIS) apply to investments for the conservation, improvement, protection, access and services intended for the social use for which the forest is intended, as well as to the expenses of conservation and maintenance of the forest or to the financing of infrastructure works and services, shall be entered in the box [00396] "Local common land forests (Chapter XV of Title VII LIS)" on page 13 of form 200 as a reduction in the profit or loss in the profit and loss account.

A tener en cuenta:

The taxable income may be negative as a result of this adjustment of the profit and loss account.