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Practical Handbook for Companies 2021

Impairment losses on debt securities

The article 13.2 c) of the LIS establishes the non-deductibility for tax purposes of impairment losses on debt securities.

Filling in form 200

In application of the provisions of the aforementioned article, the taxpayer must make the following adjustments in the boxes [00327] and [00328] "Loss due to impairment of securities representing debt (art. 13.2.c) and DT 15ª LIS)" on page 12 of form 200:

  • The taxpayer must include in the box [00327] of increases, the amount corresponding to impairment losses on debt securities accounted for in the tax period being reported, which are not deductible for tax purposes according to the provisions of article 13.2 c) of the LIS.

  • However, when in a tax period subsequent to that in which the aforementioned impairment losses, which gave rise to a positive adjustment to the accounting result (box [00327]) because they are not tax deductible, are recorded, the taxpayer must include the amount corresponding to this reversal in the box [00328].

  • In relation to the provisions of article 13.2 c) of the LIS, the fifteenth transitional provision of the LIS, establishes a transitional regime according to which the reversal of impairment losses on debt securities that have been tax deductible in tax periods commencing prior to 1 January 2015 will be included in the taxable income for corporate income tax purposes in the tax period in which the recovery of their value in the accounting environment takes place.For this purpose, such integration shall be recorded in the box [00327] of increases.