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Practical Manual of Companies 2021.

Integration into the taxable base of non-deductible expenses for tax purposes

article 11.12 of the LIS establishes that provisions for impairment of credits or other assets derived from possible insolvencies of debtors not linked to the taxpayer, not owed by public law entities and whose deductibility does not occur by application of the provisions of article 13.1.a) of this Law, as well as those derived from the application of sections 1 and 2 of article 14 of this Law , corresponding to endowments or contributions to social security systems and, where applicable, pre-retirement, that have generated deferred tax assets, to which the right established in article 130 of this Law applies, will be integrated into the tax base in accordance with the provisions of this Law, with the limit of 70 percent of the positive tax base prior to its integration, to the application of the capitalization reserve established in article 25 of this Law and to the compensation of negative tax bases.

This article regulates the integration into the tax base of a series of expenses that were not tax deductible in the tax period in which they were accounted for. by application of the imputation criteria established by the Corporate Tax regulations, and that for this reason, generated deferred tax assets capable of becoming a credit payable before the Tax Administration. The integration of these non-tax deductible expenses into the tax base must be carried out taking into account the limits explained in the following section.

Filling in form 200

To integrate these non-tax deductible expenses into the tax base as established in article 11.12 of the LIS, a series of adjustments will have to be made that will be included in boxes [00415] and [00211] «Losses from deterioration of art. 13.1 LIS and provisions and expenses (arts. 14.1 and 14.2 LIS) to which art. 11.12 and DT 33.1 LIS» on page 12 of model 200:

  • In box [00415] of increases, the amount of the provisions referred to in article 11.12 of the LIS that are considered accounting expenses in the tax period object of the tax period must be entered. declaration, but that are not tax deductible as provided in articles 13.1.a), 14.1 and 14.2 of the LIS.

  • When the circumstances included in articles 13.1.a), 14.1 and 14.2 of the LIS occur in subsequent tax periods for these expenses to be tax deductible , a negative adjustment must be made in the box [00211] .

    Keep in mind:

    For tax periods beginning on or after January 1, 2019 , information on the net amount of the turnover for the previous twelve months must be included on page 21 of form 200. to the start date of the tax period, for the purposes of determining the application of the limits established in article 11.12 of the LIS.

    For these purposes, when completing box [00211] a breakdown window will open (except in cases where the table on page 21 of form 200 has already been completed previously), in which the taxpayer must indicate whether the net amount of the turnover during the twelve months prior to the start date of the tax period has been less than 20 million, at least 20 million euros, but less than 60 million or at least 60 million euros. The option marked by the taxpayer will be transferred to the table "Net amount of turnover for the twelve months prior to the start date of the tax period" on page 21 of form 200.

    The option marked by the taxpayer will also be taken into account to determine the limits in the calculation of the compensation of negative tax bases, the compensation of negative contributions for losses of the cooperatives and the deductions for double taxation, so once Once the table on page 21 of model 200 is completed, it will not be shown on other screens.

    Remember:

    In these boxes [00415] and [00211] «Losses due to deterioration of art. 13.1 LIS and provisions and expenses (arts. 14.1 and 14.2 LIS) referred to in art. 11.12 and DT 33.1 LIS» the provisions referred to in article 11.12 of the LIS must be recorded, but without taking into account the integration limits in the tax base of these expenses established in said article. These limits will be included in boxes [00416] and [00543] «Application of the limit of art. 11.12 LIS to losses due to deterioration of art. 13.1 LIS and provisions and expenses (art. 14.1 and 14.2 LIS)» on page 12 of form 200, in the manner explained in the following section.

    These boxes [00415] and [00211] must not be completed by the cooperative societies , which, instead, will complete the boxes [00210] and [00480] «Losses due to deterioration of art. 13.1 LIS and provisions and expenses (art. 14.1 and 14.2 LIS) referred to in art. 11.12 LIS (converted into quota)» on page 14 of model 200.