Temporary negative adjustments originating in previous years
If the taxpayer has to correct the result of the Income Statement that entails a temporary correction refusal from previous years, when completing the corresponding box on pages 12 and 13, it will be displayed simultaneously on the Companies form the breakdown table "Details of corrections to profit or loss of the income statement (excluding the correction for Corporation Tax)" on page 19 of form 200. This information, once completed, will be grouped in the detail table in pages 26 bis to 26 pieces of form 200.
In this case, the box corresponding to reductions in temporary corrections resulting from previous years of the part of the table dedicated to corrections in the financial year must be completed.
The Future reductions box of temporary corrections of the columns corresponding to "must also be completed balance at the start of the financial year " and " outstanding at the end of the financial year "because the positive adjustment at source revert through negative extraaccounting adjustments , which means future reductions in the taxable base. As for the Future reductions box in the column "Pending balance at the start of the financial year," to be completed for the same amount that was entered in the Future reduction box in the "Balance column pending at the end of the financial year "of the settlement of the previous tax period. In addition, in respect of the column "Pending balance at the end of the financial year", the box of future reductions must be completed. The balance of this box will decrease until zero, when the entire amount has been reversed.
For all the above, during the tax periods in which the Correction is due because it originates in previous years, in the part of the table corresponding to the "Pending balance at the end of the financial year", the Future corrections box temporary contributions will decrease their value compared to the previous year's balance in the amount of the negative correction for this financial year. For these purposes, the "Outstanding balance at the end of the financial year" will reflect the total amount pending reversal in subsequent years. As this balance is included in the future decreases section, it indicates that this amount is being reversed by negative extraaccounting adjustments.
Example:
Based on the example proposed in the event of a positive temporary correction resulting from the financial year, we continue with the years 2023 to 2029.
The Company "C" has acquired a new machinery for the amount of 200,000 euros. The acquisition is carried out on January 1, 2021, the date on which these elements are made available to Company "C" and are in operation. The economic year of the "C" Company coincides with the calendar year. The residual value of the elements is estimated to be insignificant, so the depreciable value coincides with the acquisition price.
The accounting provision for depreciation is made by applying a coefficient of 50%, which the company estimates as an effective depreciation of these elements. The Company "C" decides to pay tax off the machinery in accordance with the table in article 12.1.a) of the LIS, i.e. it will apply a coefficient of 12%.
In accordance with the provisions of article 12,1 of the Spanish Corporation Tax Act, the following adjustments must be made in the boxes [00303] and [00304] "Differences between accounting and tax depreciation (article 12,1 of the Spanish Corporation Tax Act)" on page 12 of form 200:
| Financial year | Accounting depreciation | Tax amortisation | Correction | Form 200 | Balance at the end of the financial year |
|---|---|---|---|---|---|
| 2021 | 200,000 X 50% = 100,000 | 200,000 X 12% = 24,000 | 76,000 | [00303] | - 76,000.00 |
| 2022 | 200,000 X 50% = 100,000 | 200,000 X 12% = 24,000 | 76,000 | [00303] | - 152,000.00 |
| 2023 | --- | 200,000 X 12% = 24,000 | - 24,000 | [00304] | - 128,000.00 |
| 2024 | --- | 200,000 X 12% = 24,000 | - 24,000 | [00304] | - 104,000.00 |
| 2025 | --- | 200,000 X 12% = 24,000 | - 24,000 | [00304] | - 80,000.00 |
| 2026 | --- | 200,000 X 12% = 24,000 | - 24,000 | [00304] | - 56,000.00 |
| 2027 | --- | 200,000 X 12% = 24,000 | - 24,000 | [00304] | - 32,000.00 |
| 2028 | --- | 200,000 X 12% = 24,000 | - 24,000 | [00304] | - 8,000.00 |
| 2029 | --- | 8,000 | - 8,000 | [00304] | 0.00 |
Total tax depreciation = 24,000 x 8 + 8,000 = 200,000
Total accounting depreciation = 100,000 + 100,000 = 200,000
The tax correction that the Company "C" will make to determine the taxable base for Corporation Tax corresponding to 2023 (which will be included in the box [00304]) will be as follows:
| Accounting depreciation | Tax amortisation | Decrease in profit or loss of the income statement |
|---|---|---|
| 0 | 200,000 X 12% = 24,000 | 24,000 |
In 2023, the machinery is amortised in accounting terms, and therefore an out-of-accounting adjustment is generated negative to be entered in box [00304] of decreases as a result of the reversal of the positive adjustment , by the amount of the tax amortisation, i.e., for a value of 24,000 euros. This is a negative temporary correction resulting from previous years.
In the Companies WEB form, in the period 2023, when the box [00304] is to be filled in, the page 19 of Form 200 and the "Temporary corrections" box must be completed from previous years "of the part of the table dedicated to" Corrections in the financial year "for the amount of 24,000 euros. The form will transfer the completed information to the box [02568] "Timetable (from previous years)" on page of form 26. 200
The part corresponding to "Pending balance at the start of the financial year" must also be completed in the table on page 19. As we are in the event of a positive adjustment at source, the Future reductions box for corrections must be completed time periods for an amount of 152,000 euros, as this is the value of the future decrease box in the column " Pending balance at the end of the financial year "for the 2022 financial year , i.e. the cumulative figure for 2021 and 2022.
As for the portion corresponding to "Pending balance at the end of the financial year", as this is a positive adjustment at source , the future reductions box of Temporary corrections for the value of 128,000 euros (152,000-24,000 ), which is the outstanding balance at the start of the financial year, less than the amount reverted of 24,000 euros in 2023. The form will transfer the completed information to the box [02570] "Pending balance at the end of the financial year" on page 26 bis of form 200.
Details of the corrections to profit or loss of the income statement (excluding the correction for IS) (page 19 of form 200)
| Total | --- | 152,000 | --- | 24,000 | --- | 128,000 |
| Fiscal year 2023 tax corrections | Balance pending at the start of the financial year ##44441## ##44441## | Corrections for the financial year | Balance pending end of financial year ##44441## ##44441## | |||
|---|---|---|---|---|---|---|
| Future increases | Future decreases | Increases | Decreases | Future increases | Future decreases | |
| Permanent corrections | --- | --- | --- | --- | --- | --- |
| Temporary corrections resulting from the financial year ##44441## ##44441## | --- | 152,000 | --- | --- | --- | 128,000 |
| Temporary corrections originating in previous years ##44441## ##44441## | --- | 24,000 | ||||
Table of Details of corrections to profit or loss of profit or loss (excluding the correction for the Corporation Tax Act) (page to 26 years of form 26) 200
| Details of adjustments | Type | Outstanding balance at the start of the financial year ##44441## ##44441## | Corrections for the financial year | Outstanding balance at the end of the financial year ##44441## ##44441## | ||||
|---|---|---|---|---|---|---|---|---|
| Permanent | Temporary (origin in the financial year) | Temporary (origin in previous years) ##44442## ##44442## | ||||||
| Differences between accounting and tax depreciation (article 12,1 of the Spanish Corporation Tax Act) ##44441## ##44441## | Increase | --- | --- | --- | --- | --- | ||
| Differences between accounting and tax depreciation (article 12,1 of the Spanish Corporation Tax Act) ##44441## ##44441## | Decrease | [02569] 152,000 | --- | --- | [02568] 24,000 | [02570] 128,000 | ||
In the financial years from 2024 to 2028, the adjustments will be the same as those presented for 2023, with the difference that the "Pending balance at the end of the financial year", in the Future reductions of Temporary corrections , their amount will decrease in each financial year at the rate of 24,000 euros each year, until reaching 2028 euros in 8,000.
In 2029, on the Companies WEB form, when you are going to fill in the box [00304] the table on page 19 of form 200 will be displayed and the Decreases box of "must be completed temporary statements originating in previous years "in the part of the table dedicated to" corrections in the financial year "by amount of 8,000 euros, as this is amount pending tax amortisation .The form will transfer the completed information to the box [02568] "Timetable (from previous years)" on page of form 26. 200 In addition, with regard to the part corresponding to "Pending balance at the end of the financial year," the box of Future reductions of Temporary corrections for 0 euros (8,000-8,000), since there is no outstanding balance because in this financial year the remaining balance at 8,000 has been reversed. 2028The form will show 0 in the box [02570] "Pending balance at the end of the financial year" on page of form 26. 200
Details of the corrections to profit or loss of the income statement (excluding the correction for the Corporation Tax Act) (page 19 of form 200)
| Total | --- | 8,000 | --- | 8,000 | --- | --- |
|
Fiscal year 2029 | Balance pending at the start of the financial year ##44441## ##44441## | Corrections for the financial year | Balance pending end of financial year ##44441## ##44441## | |||
|---|---|---|---|---|---|---|
| Future increases | Future decreases | Increases | Decreases | Future increases | Future decreases | |
| Permanent corrections | --- | --- | --- | --- | --- | --- |
| Temporary corrections resulting from the financial year ##44441## ##44441## | --- | 8,000 | --- | --- | --- | --- |
| Temporary corrections originating in previous years ##44441## ##44441## | --- | 8,000 | ||||
Table of Details of corrections to profit or loss of profit or loss (excluding the correction for the Corporation Tax Act) (page to 26 years of form 26) 200
| Details of adjustments | Type | Outstanding balance at the start of the financial year ##44441## ##44441## | Corrections for the financial year | Outstanding balance at the end of the financial year ##44441## ##44441## | ||||
|---|---|---|---|---|---|---|---|---|
| Permanent | Temporary (origin in the financial year) | Temporary (origin in previous years) ##44442## ##44442## | ||||||
| Differences between accounting and tax depreciation (article 12,1 of the Spanish Corporation Tax Act) ##44441## ##44441## | Increase | --- | --- | --- | --- | |||
| Differences between accounting and tax depreciation (article 12,1 of the Spanish Corporation Tax Act) ##44441## ##44441## | Decrease | [02569] 8,000 | --- | --- | [02568] 8,000 | [02570] 0 | ||