Skip to main content
Practical Handbook for Companies 2021

Negative income

Filling in form 200

In the boxes [00225] and [00226] "Negative income (art. 11.9 and 11.10 LIS)" on page 12 of form 200, the differences in temporary imputation derived from the application of article 11.9 and 10 of the LIS should be included:

The article 11.9 of the LIS establishes that the negative income generated in the transfer of elements of tangible fixed assets, real estate investments, intangible fixed assets and debt securities, when the acquirer is an entity of the same group of companies according to the criteria established in article 42 of the Commercial Code, regardless of residence and the obligation to prepare consolidated annual accounts, will be allocated in the tax period in which said assets are removed from the balance sheet of the acquiring entity, are transferred to third parties outside the aforementioned group of companies, or when the transferring or acquiring entity ceases to form part of the same group of companies.However, in the case of depreciable assets, negative income shall be included, prior to such circumstances, in the tax periods remaining in the useful life of the assets transferred, depending on the depreciation method used in respect of those assets.

The article 11.10 of the LIS establishes that the negative income derived from the transfer of securities representing the participation in the capital or equity of entities, when the acquirer is an entity of the same group of companies according to the criteria established in article 42 of the Commercial Code, regardless of residence and the obligation to prepare consolidated annual accounts, will be imputed in the tax period in which said assets are transferred to third parties outside the aforementioned group of companies, or when the transferring or acquiring entity ceases to form part of the same, reduced by the amount of the positive income obtained in said transfer to third parties, provided that the following circumstances apply in respect of the securities transferred:

  • At no time during the year prior to the day on which the transfer takes place is the requirement established in Article 21.1 a) of the LIS met, and

  • In the case of a shareholding in the capital or equity of entities not resident in Spanish territory, in the tax period in which the transfer takes place, the requirement established in article 21.1 b) of the LIS must be met.

The provisions of Article 11.10 of the LIS shall apply to the transfer of shares in a temporary joint venture or similar forms of collaboration located abroad, but not to the termination of the investee, unless this is the result of a restructuring operation or the activity is continued under any other legal form.

If does not meet one or none of the requirements of art. 21.1.a) LIS.

  • Shareholding > 5% or V. Adq.> 20 M€ (Units acquired before 01-01-2021)
  • Seniority 1 year

But does meet the requirement of art. 21.1.b) LIS, i.e. the investee is taxed at the nominal rate > 10%.

Then article 13.2 LIS shall apply.

Therefore, in the tax period in which the transfer of the assets or securities referred to in Article 11.9 and 10 of the LIS takes place, the transferring entity must enter in the box [00225] of increases, the amount of the negative income generated by said transfer that is not deductible for tax purposes.When, in subsequent tax periods, the acquiring entity derecognises these assets and liabilities from the balance sheet of the acquiring entity, transfers them to third parties outside the aforementioned group of companies, or when the transferring or acquiring entity ceases to form part of the same, the acquiring entity shall include the amount of these negative incomes in its tax base by means of a negative adjustment which it shall include in the box [00226] of decreases.