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Practical Handbook for Companies 2021

Positive permanent adjustments

In the event that the taxpayer has to make a correction to the result of the Profit and Loss Account that entails a positive permanent correction to the accounting result, on filling in the corresponding box on pages 12 and 13, the breakdown table "Details of corrections to the result of the profit and loss account (excluding the correction for Corporation Tax)" on page 19 of form 200 will be shown simultaneously in the Companies WEB form on page 19 of form 200.This information, once completed, shall be grouped in the detailed table on pages 26a to 26e of Form 200.

In this case, only the box corresponding to "Increases in permanent corrections" in the part of the table on page 19 of Form 200 dedicated to "Corrections for the financial year" will be enabled to be filled in. The column showing the outstanding balances at the beginning and at the end of the year cannot be filled in because as this is a permanent off-balance-sheet adjustment there is no outstanding balance as the adjustment cannot be reversed in subsequent years.

Example:

Entity "A", whose tax period coincides with the calendar year, filed and paid form 202 corresponding to the first instalment payment of Corporate Income Tax for 2021 after the deadline (1 month later) without prior request from the Tax Administration, the amount paid amounted to 6,000 euros.On 10 June 2021, this entity received payment of the surcharge for late filing without prior notice regulated in article 27 of the LGT, amounting to 300 euros (5 percent), although it proceeded to pay the amount of 225 euros on 13 July 2021 by application of the 25 percent reduction contained in article 27.5 of the LGT, as indicated in the surcharge payment itself, as it had the right to it by paying the remaining amount of the surcharge within the period established in article 62.2 LGT (until 20 July 2021) and having already paid the debt derived from the self-assessment at the time of filing the same.

In this example, entity "A" has a non-deductible expense amounting to 225 euros due to article 15 c) of the LIS which establishes that criminal and administrative fines and penalties, surcharges for the enforcement period and the surcharge for late filing without prior notice are not deductible for tax purposes.This is a permanent correction because this expense can never be deductible.

This entity must make a positive adjustment to the accounting result in the model 200 for the period 2021, in the box [01815] "Fines, penalties and others (article 15 c) LIS)" on page 12 of the model 200 in the amount of 225 euros.

Financial yearAccountFiscallyTax correctionForm 200
2021 - 225 0 + 225 Box [01815].

In the Companies WEB form, when box [01815] on page 12 of form 200 is to be completed, the box on page 19 of form 200 shall be displayed.In this table, only the box corresponding to "Increases in permanent corrections" in the part of the table dedicated to "Corrections for the financial year" will be enabled to be filled in. The form shall place the information completed in the table on page 19 in box [02771] on page 26b of Form 200.

Details of corrections to the profit and loss account (excluding the correction for IS) (page 19 of Form 200)

Total --- --- 225 --- --- ---
2021 fiscal year
tax adjustments
Balance outstanding at
principle of exercise
Exercise correctionsBalance outstanding end
of exercise
Future increasesFuture decreasesIncreasesDecreasesFuture increasesFuture decreases
Permanent corrections --- --- 225 --- --- ---
Temporary adjustments with origin
in the exercise
--- --- --- --- --- ---
Temporary adjustments with origin
in previous years
--- ---

Table of details of corrections to the profit and loss account result (excluding adjustment for IS) (pages 26a to 26e of Form 200)

Detail of adjustmentsTipoOutstanding balance
at the beginning of the year
Exercise correctionsOutstanding balance
at the end of the financial year
PermanentTemporary
(origin in the exercise)
Temporary
(originating in previous years)
Fines, penalties and others (art. 15 c) LIS) INCREASE --- [02771] 225 --- --- ---