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Practical Handbook for Companies 2021

Other adjustments linked to temporary imputation

Filling in form 200

In the boxes [00361] and [00362] "Other differences in the temporary allocation of income and expenses (art. 11 LIS)" on page 12 of form 200, in addition to the adjustments included in section "General considerations" of this chapter, all the corrections generated by differences in temporary allocation that do not fit in specific boxes created in form 200 should be included.

Thus, article 11.5 of the LIS establishes that the reversal of expenses that have not been deductible for tax purposes will not be included in the tax base .

Article 11.7 of the LIS states that when provisions are eliminated, because they have not been used for their intended purpose, without crediting an income account for the year, their amount shall be included in the taxable income of the entity that made the provision, to the extent that the provision would have been considered a deductible expense.

Finally, article 11.8 of the LIS establishes that when the entity is the beneficiary or has the right to surrender life insurance contracts in which it also assumes the investment risk, the difference between the net asset value of the assets assigned to the policy at the end and at the beginning of each tax period will be included in the tax base.

The provisions of this section will not be applied to the insurance that carried out commitments for pensions assumed by companies in the terms established in the first additional provision of the rewritten text of the Law of Regulation of Pension Plans and Funds, approved by Royal Legislative Decree 1/2002 of 29 November, and in its implementing regulations.

The amount of imputed income shall reduce the income derived from the receipt of amounts from the contracts.

Therefore, in relation to the provisions of these precepts, the taxpayer must make adjustments in the boxes [00361] and [00362], the adjustments generated by the non-inclusion in the tax base of the reversal of expenses that have not been tax deductible, as established in article 11.5 of the LIS, or when provisions are eliminated because their purpose is not applied as established in article 11.7 of the LIS, or when the entity is beneficiary or has the right to surrender life insurance contracts in which it also assumes the investment risk, in the terms established by article 11.8 of the LIS.