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2021 Corporation Tax practical guide.

Limits on inclusion in the taxable base of non-deductible expenses for tax purposes at the time they are recorded in the accounts

As we have already seen in the previous section, the expenses that were not deductible in the tax period in which the amounts were accounted for Article 11,12 of the Corporation Tax Act is included in the taxable base of the tax period in which the conditions for tax deductibility in accordance with the provisions of the Corporation Tax regulations, taking into account the following limits:

  1. As set out in the first paragraph of article 11,12 of the Spanish Corporation Tax Act, these expenses will be included in the tax base of in accordance with the provisions of this Act, with the limit of 70% of the positive taxable base prior to its integration, at the application of the capitalisation reserve established in article 25 of this Act and the offsetting of negative taxable bases.

    With regard to the 70% limit, the additional provision of the Spanish Corporation Tax Act establishes that, for tax periods starting from 1 January 2016, taxpayers whose net turnover is at least 20 million for the 12 months prior to the date of the start of the tax period, this limit shall be replaced by the following:

    • 50%, When in the aforementioned 12 months the net turnover is at least 20 million euros, but less than 60 million euros.

    • 25%, When in the aforementioned 12 months the net turnover is at least 60 million euros.

    Amounts not integrated into a tax period will be subject to integration in the following tax periods with the same limit. For these purposes, the provisions corresponding to the oldest tax periods will be included first.

  2. For tax periods beginning from 1 January 2016, in accordance with the provisions of Article 130,1 and the transitory provision of the Spanish Corporation Tax Act , the limit established in article 11,12 of the Spanish Corporation Tax Act for the integration into the taxable base of the expenses that were not tax deductible in the tax period in which they were posted, only applicable to those that generated tax assets deferred that can be converted into credit with the Tax Administration, for an amount equal to the positive net amount corresponding to the tax period for generating these.

Filling in form 200

The application of the limit established in article 11,12 of the Spanish Corporation Tax Act in the integration of these expenses that were not deductible in the tax period in which the assets were posted and generated by deferred tax, leading to adjustments to be made that will be included in the boxes [00416] and [00543] "Application of the limit of article 11,12 of the Spanish Corporation Tax Act, to losses due to impairment of article 13,1 of the Spanish Corporation Tax Act and provisions and expenses (arts. 14,1 And 14,2 of the Spanish Corporation Tax Act) " on page 12 of form 200:

  • In the tax period in which these expenses are tax deductible, in addition to stating their amount in box [00211], complete the box [00416] with the amount of those expenses whose deductibility is not applicable in that period due to exceeding the limit set out in the first paragraph of article 11,12 of the Spanish Corporation Tax Act. In other words, in box [00416] the difference between the amount entered in box [00211] and the amount corresponding to the limit set out in that article must appear.

  • With regard to expenses that have not been included in the tax base in the tax period that were deductible due to exceeding the limit established in the first paragraph of article 11,12 of the Spanish Corporation Tax Act, must be included in the following tax periods in box [00543], taking into account the same limit. For this purpose, the second paragraph of article 11,12 of the Spanish Corporation Tax Act establishes that the charges corresponding to the oldest tax periods will be included first.

    Keep in mind:

    Boxes [00416] and [00543] "Application of the limit of article 11,12 of the Corporation Tax Act, to impairment losses of article 13,1 of the Corporation Tax Act and provisions and expenses (arts. 14,1 And 14,2 of the Spanish Corporation Tax Act) "must not be completed by the cooperative companies, which will fill in, instead, the boxes [00408] and [01037] "Application of the limit of article 11,12 of the Corporation Tax Act to impairment losses of article 13,1 Corporation Tax Act and provisions and expenses (article 14,1 and 14,2 of the Spanish Corporation Tax Act) "on page 14 of form 200.