Practical examples

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

Assumption 1

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

The previous positive tax base of the entity is 8,000 euros.

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

In fiscal year 2021, 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 beginning of the tax period is less than 20 million euros, is 70 percent. Therefore, the entity will enter in box [00211] of reductions the amount of 10,000 euros corresponding to the expense for contributions to social security systems that is deductible in this year. Likewise, the entity must enter in box [00416] of increases the amount of 4,400 (10,000 - 5,600) euros that, by application of the limit established for the 2021 financial year in article 11.12 of the LIS, are not deductible in said financial year.

Assumption 2

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

The previous positive tax base of the entity is 8,000 euros.

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

In fiscal year 2021, this expense becomes tax deductible. However, the entity must take into account the limit established in article 11.12 of the LIS that for entities whose turnover in the 12 months prior to the beginning 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 enter in box [00211] of reductions the amount of 10,000 euros corresponding to the expense for contributions to social security systems that is deductible in this year. Likewise, the entity must enter in the increase box [00416] the amount of 6,000 (10,000 - 4,000) euros that, by application of the limit established for the 2021 financial year in article 11.12 and in the fifteenth Additional Provision of the LIS, are not deductible in said year.