Temporary negative adjustments originating in the financial year

In the event that the taxpayer has to make a correction to the result of the Profit and Loss Account that entails a negative temporary correction originating in fiscal year to the accounting result, by completing the box that corresponds to pages 12 and 13, the breakdown table “Details of the corrections to the result of the profit and loss account (excluding the correction for Corporate Tax)” will be displayed simultaneously in the Companies WEB form on page 19 of model 200. This information, once completed, will be grouped in the detail table contained on pages 26 bis to 26 exies of model 200.

In this case, the box corresponding to Decreases of « Temporary corrections originating in the year » of the part of the table dedicated to « Exercise corrections» . Likewise, the box Future increases of Temporary corrections must be completed in the column corresponding to « Outstanding balance at the end of the year » . The reason is that, although it is a negative adjustment at source , will reverse through positive off-the-books adjustments, This means that this negative temporary correction originating in the year will entail future increases in the tax base , therefore, in the column « Outstanding balance at the end of the year » , the column Future increases must be completed, so that year after year the balance increases if the adjustment continues to be at origin or decreases, if that adjustment has started to revert, but always in the Future Increases column . Once the first tax period in which the adjustment is made has elapsed, in the following settlements the future increases box in the column « Pending balance in order to fiscal year" for the same amount that was entered in the Future increase box in the column " Outstanding balance at the end of the fiscal year" of the settlement of the previous tax period.

For all of the above, during the tax periods in which the Correction originates in the fiscal year itself, in the part of the table corresponding to " Outstanding balance at the end of the fiscal year" the Future increases Temporary corrections box will increase its value with respect to the Balance from the previous year in the amount of the positive correction for this year. With all this, the " Outstanding balance at the end of the year" will reflect the total amount pending reversal in subsequent years through positive extra-accounting adjustments.

Example:

The Joint Stock Company "D", which in 2021 meets the requirements for the application of tax incentives for small companies, acquires a computer, making it available to it and coming into operation on July 1, 2021, all for a amount of 6,000 euros. It is estimated that the residual value of the element is insignificant, so the amortizable value coincides with the acquisition price.

The company decides to carry out the accounting depreciation of the computer according to its estimated technical depreciation, which is the result of applying a coefficient of 25 percent. The entity also decides to carry out the tax-deductible amortization of the computer by applying the multiplier coefficient of 2 referred to in article 103 of the LIS .

The financial year of the entity coincides with the calendar year. The tax-deductible amortization in fiscal year 2021 will be as follows:

Maximum coefficient applicable to the computer according to the officially approved amortization tables: 25%.
Application of the multiplier coefficient: 2 x 25% = 50%.
Accelerated amortization practiced: 6,000 x 6/12 ⁽¹⁾ x 50% = 1,500 euros.

^{Note 1)} Amortization is carried out from the date of entry into operation of the amortizable element, in this case, July 1, 2021. Therefore, in this exercise, said amortization must refer to that carried out in six months of the year 2021 of the LIS. ^(Back)

The accounting amortization carried out by Company “D” in fiscal year 2021 will be as follows:

6,000 x 6/12 ⁽²⁾ x 25% = 750 euros

^{Note (2)} Amortization is carried out from the date of entry into operation of the amortizable element, in this case, July 1, 2021. Therefore, in this exercise, said amortization must refer to that carried out in six months of the year 2021 of the LIS. ^(Back)

Decrease in the result of the profit and loss account to be recorded in box [00314]: 1,500 - 750 = 750 euros

Therefore, in fiscal year 2021 and following , the corrections to be made in boxes [00313] and [00314] “Differences between accounting and tax amortization (art. 12.1 LIS)” on page 12 of model 200 will be:

Financial year	Tax amortization	Accounting amortization	Corrections		Form 200	Balance at year-end
Financial year	Tax amortization	Accounting amortization	+	-	Form 200	Balance at year-end
2021	6,000 x 0.5 x 50% = 1,500	6,000 x 0.5 x 25% = 750	---	750	[00314]	750
2022	6,000 x 50% = 3,000	6,000 x 25% = 1,500	---	1,500	[00314]	2,250
2023	Rest of active value = 1,500	6,000 x 25% = 1,500	---	---	---	2,250
2024	---	6,000 x 25% = 1,500	1,500	---	[00313]	750
2025	---	Rest active value = 750	750	---	[00313]	0

Total tax amortization = 1,500 + 3,000 + 1,500 = 6,000

Total accounting amortization = 750 + 1,500 + 1,500 + 1,500 + 750 = 6,000

In the WEB Companies form, in fiscal year 2021 when the box [00314] is to be completed, the table on page 19 of form 200 will be displayed and the “Decreases of” box must be completed. Temporary corrections originating in the financial year» of the part of the table dedicated to « Corrections of the financial year» in the amount of 750 euros . The form will transfer the completed information to box box [03197] “Temporary (originating in the financial year)” on page 26d of form 200. Likewise, in the table displayed on page 19, the part corresponding to " Outstanding balance at the end of the year" must be completed, as we are dealing with a negative adjustment at source , the box for Future increases of Temporary corrections for a value of 750 euros must be completed, because this negative temporary difference at origin will be reversed through positive extra-accounting adjustments and will entail future increases in the tax base. The form will transfer the completed information to box box [03195] “Outstanding balance at year-end” on page 26d of form 200.

Detail of the corrections to the result of the profit and loss account (excluding the correction for IS ) (page 19 of model 200)

Fiscal year 2021 tax corrections	Outstanding balance at beginning of year		Exercise corrections		Outstanding balance ending of fiscal year
Total	---	---	---	750	750	---
Fiscal year 2021 tax corrections	Future increases	Future declines	Increases	Decreases	Future increases	Future declines
Permanent fixes	---	---	---	---	---	---
Temporary corrections with origin in the year	---	---	---	750	750	---
Temporary corrections originating in previous years	---	---	---	---	750	---

Detail table of the corrections to the result of the profit and loss account (excluding the correction by the IS) (page 26 bis to 26 e of model 200)

Settings detail	Type	Outstanding balance at the beginning of the year	Exercise corrections			Outstanding balance at year-end
Settings detail	Type	Outstanding balance at the beginning of the year	Permanent	Temporary (origin during the year)	Temporary (origin in previous exercises )	Outstanding balance at year-end
Small companies: accelerated amortization (art. 103 LIS and DT 28 LIS)	INCREASE	---	---	---	---	[03195] 750
Small companies: accelerated amortization (art. 103 LIS and DT 28 LIS)	DECREASE	---	---	[03197] 750	---	---

In financial year 2022 :

Accelerated amortization practiced: 6,000 x 50% = 3,000 euros.
The accounting amortization carried out by Company "D" in fiscal year 2022 will be as follows: 6,000 x 25% = 1,500 euros

Decrease in the result of the profit and loss account to be recorded in box [00314]: 3,000 – 1,500 = 1,500 euros

In the WEB Companies form, in fiscal year 2022 , this adjustment will continue to be a temporary correction originating in fiscal year , therefore, of the In the same way as in 2021, when box [00314] is to be completed, the table on page 19 of model 200 will be displayed and the box for Decreases of « must be completed Temporary corrections originating in the year» ##4##of the part of the table dedicated to « Corrections for the year» in the amount of 1,500 euros. The form will transfer the information to box [03197] "Temporary (originating in the fiscal year" on page 26d of form 200.

Likewise, in the table displayed on page 19, the part corresponding to " Outstanding balance at the beginning of the year" must be completed. As we are dealing with a negative adjustment at origin , the Future increases of Temporary corrections box must be completed amount of 750 euros since this is the value of the future increase box in the column " Outstanding balance at the end of the year" for fiscal year 2021.

Regarding the part corresponding to " Outstanding balance at the end of the year" , as it is a negative adjustment at source, the box must be completed. Future increases of Temporary corrections because this negative temporary difference at origin will be reversed through positive extra-accounting adjustments and will imply future increases in the tax base . The amount of the aforementioned box will be 2,250 euros (750 + 1,500), which is the accumulated balance for 2021 and 2022. The form will transfer the information to box [03195] “Outstanding balance at year-end” on page 26d of form 200.

Detail of the corrections to the result of the profit and loss account (excluding the correction by the IS) (page 19 of model 200)

Fiscal year 2022 tax corrections	Outstanding balance at beginning of year		Exercise corrections		Outstanding balance ending of fiscal year
Total	750	---	---	1,500	2,250	---
Fiscal year 2022 tax corrections	Future increases	Future declines	Increases	Decreases	Future increases	Future declines
Permanent fixes	---	---	---	---	---	---
Temporary corrections with origin in the year	750	---	---	1,500	2,250	---
Temporary corrections originating in previous years	750	---	---	---	2,250	---

Detail table of the corrections to the result of the profit and loss account (excluding the correction by the IS) (page 26 bis to 26 e of model 200)

Settings detail	Type	Outstanding balance at the beginning of the year	Exercise corrections			Outstanding balance at year-end
Settings detail	Type	Outstanding balance at the beginning of the year	Permanent	Temporary (origin during the year)	Temporary (origin in previous exercises )	Outstanding balance at year-end
Small companies: accelerated amortization (art. 103 LIS and DT 28 LIS)	INCREASE	[03194] 750	---	---	---	[03195] 2,250
Small companies: accelerated amortization (art. 103 LIS and DT 28 LIS)	DECREASE	---	---	[03197] 1,500	---	---