Practical examples

In the 2020 financial year, entity "Z" generated non-deductible tax expenses of 10,000 euros for provisions to social security systems that have generated deferred tax assets under article 11.12 of the LIS , to which the right established in article 130 of the LIS applies. Subsequently, in the 2021 financial year, these expenses become tax deductible.

Assumption 1

We assume that the amount of turnover of entity "Z" in the 12 months prior to the start of the tax period corresponding to 2021 is 15 million euros.

The entity's previous positive tax base is 8,000 euros.

In this case, in the 2020 financial year the entity should have recorded in box [00415] of increases the amount of 10,000 euros corresponding to the expense for provisions to social security systems that was not tax deductible in said period.

In the 2021 financial year, this expense becomes tax deductible. However, the entity must take into account the limit established in article 11.12 of the LIS, which for entities whose turnover in the 12 months prior to the start of the tax period is less than 20 million euros, is 70 percent. Therefore, the entity will record in box [00211] of decreases the amount of 10,000 euros corresponding to the expense for provisions to social security systems that is deductible in this fiscal year. Likewise, the entity must record in box [00416] of increases the amount of 4,400 (10,000 - 5,600) euros that, due to the application of the limit established for the 2021 fiscal year in article 11.12 of the LIS, are not deductible in said fiscal year.

Assumption 2

We assume that the amount of turnover of entity "Z" in the 12 months prior to the start of the tax period corresponding to 2021 is 45 million euros.

The entity's previous positive tax base is 8,000 euros.

In this case, in the 2020 financial year the entity should have recorded in box [00415] of increases the amount of 10,000 euros corresponding to the expense for provisions to social security systems that was not tax deductible in said period.

In the 2021 financial year, this expense becomes tax deductible. However, the entity must take into account the limit established in article 11.12 of the LIS, which for entities whose turnover in the 12 months prior to the start of the tax period is equal to or greater than 20 million euros, but less than 60 million euros, is 50 percent ( DA 15 of the LIS). Therefore, the entity will record in box [00211] of decreases the amount of 10,000 euros corresponding to the expense for provisions to social security systems that is deductible in this fiscal year. Likewise, the entity must record in box [00416] of increases the amount of 6,000 (10,000 - 4,000) euros that, due to the application of the limit established for the 2021 fiscal year in article 11.12 and in the Fifteenth Additional Provision of the LIS, are not deductible in said fiscal year.