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Practical Manual of Companies 2021.

General considerations

article 11.1 of the LIS establishes that income and expenses derived from transactions or economic events will be attributed to the tax period in which their accrual occurs. , in accordance with accounting regulations, regardless of the date of payment or collection, respecting the due correlation between them.

Therefore, for tax purposes, the rule establishes the accrual principle as a general criterion for allocating income and expenses.

This fiscal criterion coincides with the accounting criterion included in letter d) of article 38 of the Commercial Code, which establishes that the expenses and income that affect it will be attributed to the year to which the annual accounts refer, regardless of the date of payment or collection.

Remember:

article 11.2 of the LIS establishes that the tax effectiveness of criteria for temporary allocation of income and expenses other than the accrual principle, used exceptionally by the taxpayer in order to obtain a true image of the assets , the financial situation and the results, in accordance with the provisions of articles 34.4 and 38.i) of the Commercial Code , will be subject to approval by the Tax Administration, in the manner determined by regulation.

In relation to the accrual principle, article 11.3. 1 of the LIS includes the principle of accounting entry according to which expenses that have not been accounted for in the loss account will not be tax deductible and profits or in a reserve account if so established by a legal or regulatory rule, except as provided in the Tax Law regarding assets that can be amortized freely or in an accelerated manner.

Income and expenses accounted for in the profit and loss account or in a reserve account in a tax period other than that in which their temporary allocation is appropriate, as provided for in sections 1 and 2 of article 11 of the LIS. , will be allocated in the corresponding tax period in accordance with the provisions of said sections. However, in the case of expenses imputed for accounting purposes in said accounts in a tax period subsequent to the one in which their temporary imputation is appropriate or of income imputed to them in a previous tax period, the temporary imputation of both will be carried out in the period tax in which the accounting imputation has been made, provided that this does not result in lower taxation than that which would have corresponded by application of the temporal imputation rules provided for in the previous sections.

Filling in form 200

In relation to the above, the following corrections will have to be made in boxes [00361] and [00362] "Other differences in temporary allocation of income and expenses (art. 11 LIS)" of page 12 of model 200:

  • If an expense is accounted for in the profit and loss account or in a reserve account in a tax period prior to the one in which its temporary allocation is appropriate, the precise adjustment must be made to that is not imputed in said period, but in the accrual period.

    Therefore, if this expense has been recorded in the profit and loss account, a correction for increases must be made in box [00361] . However, in the event that said expense has been recorded in a reserve account, the tax base will not have to be increased since its amount is not included in the accounting result. Likewise, in the tax period in which the accrual of said expense occurs, a correction must be made for a decrease in box [00362] , regardless of the account in which they were recorded. .

  • Income allocated to the profit and loss account or to a reserve account in a tax period prior to the one in which its temporary allocation is appropriate, will be allocated for tax purposes in the tax period corresponding to its accounting imputation, provided that this does not result in lower taxation than that which would have corresponded by application of the general rules of temporary imputation.

    In this case, if the income has been accounted for in the profit and loss account, no adjustment will have to be made. On the other hand, if said income has been accounted for in a reserve account, a correction for increases in box [00361] ## must be made in the tax period in which it was recorded.

  • Expenses that are allocated for accounting purposes in the profit and loss account or in a reserve account in a tax period subsequent to the one in which their temporary allocation is appropriate, will be allocated for tax purposes in the tax period corresponding to its accounting imputation, provided that this does not result in lower taxation than that which would have corresponded by application of the general rules of temporary imputation.

    In this case, if the expense has been accounted for in the profit and loss account, no adjustment will have to be made. On the other hand, if said expense has been accounted for in a reserve account, a correction for a decrease in box [00361] must be made in the tax period in which it was recorded.

  • Income that has been accounted for in the profit and loss account or in a reserve account in a year subsequent to the one in which its temporary allocation is appropriate, will give rise to a correction for decreases in box [00362] only when they have been recorded in the profit and loss account in the year in which they were recorded. However, if said income has been recorded in a reserve account, the tax base will not have to be reduced, since its amount is not included in the accounting result. Likewise, in the tax period of its tax accrual that will be prior to its accounting, a correction will have to be made for increases in box [00361] , regardless of the account in which it was recorded. would have counted.