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 amounts that savings banks and banking foundations allocate from their results to the financing of charitable-social works, in accordance with the regulations by which they are governed.

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

Filling in form 200

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

2. Article 24.3 of the LIS

They will not be included in the tax base:

1. The maintenance expenses of the charitable-social work that are carried out from the social work fund, even if they exceed the allocations made, without prejudice to the fact that they are considered as 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. The income derived from the transmission of investments affects the 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 its accrual, and in the box [00374] of reductions, the amount of the income derived from the transmission of investments affecting the charitable work -social in the tax period of the accrual of said income.

3. Article 24.4 of the LIS

The allocation to the charitable-social work carried out by the banking foundations or, where applicable, the maintenance expenses of the charitable-social work that, in accordance with the applicable accounting regulations, are recorded with a charge to the loss account and profits, may reduce the tax base of the credit institutions in which they 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 the box [00373] of increases, the amount of the endowment to the charitable-social work , or, where applicable, 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 this, the banking foundation must communicate to the credit institution that had paid the dividends the amount of the reduction thus calculated and the non-application of said amount as a tax-deductible item in its tax return. this Tax.