Charity and social work of savings banks and bank foundations

In application of the provisions of article 24 of the LIS , savings banks and banking foundations must make the following adjustments in the boxes [00373] and [00374] "Charitable-social work of savings banks and banking foundations (art. 24 LIS)" :

1. Articles 24.1 and 24.2 of the LIS

According to the provisions of article 24.1 of the LIS the amounts that savings banks and banking foundations allocate from their results to the financing of charitable-social works will be tax deductible, in accordance with the regulations by which they are governed.

In this sense, article 24.2 of the LIS establishes that the amounts assigned to the charitable-social work of savings banks and banking foundations must be applied, at least, by 50 percent , in the same tax period to which the assignment corresponds, or in the immediately following one, to the realization of the affected investments, or to cover maintenance expenses of the institutions or establishments covered by it.

Filling in form 200

Consequently, savings banks and banking foundations must include in box [00374] of decreases, the amounts that they allocate from the result of the fiscal year corresponding to the tax period subject to declaration to the financing of charitable-social works.

2. Article 24.3 of the LIS

The following will not be included in the tax base:

1. The maintenance expenses of the charitable-social work that are charged to the social work fund, even if they exceed the allocations made, without prejudice to the fact that they are considered to be the application of future allocations. However, such expenses will be tax deductible when, in accordance with the applicable accounting regulations, they are recorded against the profit and loss account.

2. Income derived from the transfer of investments allocated to charitable-social work.

Filling in form 200

Savings banks and banking foundations must include in box [00373] of increases, the amount of the maintenance expenses of the charitable-social work in the tax period of their accrual, and in box [00374] of decreases, the amount of income derived from the transfer of investments affected by the charitable-social work in the tax period of the accrual of said income.

3. Article 24.4 of the LIS

The provision to social welfare works made by banking foundations or, where appropriate, the maintenance costs of the social welfare works which, in accordance with the applicable accounting regulations, are recorded against the profit and loss account, may reduce the taxable base of the credit institutions in which participate, in the proportion that the dividends received from the aforementioned entities represent with respect to the total income of the banking foundations, up to the maximum limit of the aforementioned dividends.

Filling in form 200

Provided that the provisions of article 24.4 of the LIS are complied with, banking foundations must include in box [00373] of increases, the amount of the endowment to the charitable-social work , or where appropriate, that of its maintenance expenses, in the proportion that the dividends received from credit institutions represent with respect to the total income of the banking foundations and up to the maximum limit of the aforementioned dividends. To do so, the banking foundation must notify the credit institution that paid the dividends of the amount of the reduction thus calculated and the non-application of said amount as a tax-deductible item in its declaration of this Tax.