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Practical Handbook for Companies 2021

Pension expenditure and provisions not affected by article 11.12 LIS (articles 14.1, 14.6 and 14.8 LIS)

Although, for accounting purposes, allocations to provisions made in the tax period are deductible, the Corporate Income Tax regulations establish the non-deductibility of certain expenses for provisions, which means that the taxpayer has to make a series of adjustments that must be entered in the boxes [00335] and [00336] "Expenses and provisions for pensions not affected by art. 11.12 LIS (arts.14.1, 14.6 and 14.8 LIS)" from page 12 of Form 200:

  • The article 14.1 of the LIS establishes that will not be deductible the expenses for provisions and internal funds for the coverage of contingencies identical or analogous to those that are the object of the Texto Refundido de la Ley de Regulación de los Planes y Fondos de Pensiones, approved by the Real Decreto Legislativo 1/2002, de 29 de noviembre.

    Therefore, in the tax period in which these expenses for provisions and internal funds are accounted for, the amount of these expenses should be entered in box [00335] of increases.

    However, Article 14.1 of the LIS establishes that these expenses will be fiscally deductible in the tax period in which the benefits are paid, so that in that tax period the amounts corresponding to these expenses which, in a previous tax period, were included in the manner indicated above, must be entered in the box [00336] of decreases.

  • The article 14.6 of the LIS establishes that personnel expenses corresponding to payments based on equity instruments, used as a form of remuneration to employees, and paid by means of the delivery of such instruments, will be tax deductible when this delivery takes place.

    In application of the provisions of this precept, the taxpayer in the tax period in which these personnel expenses are accounted for shall enter the amount thereof in the box [00335] of increases.And in the tax period in which the delivery of these instruments occurs, the taxpayer must enter in the box [00336] of decreases the amounts corresponding to these expenses which, in a previous tax period, were included in the manner indicated above.

  • The first paragraph of article 14.8 of the LIS establishes that expenses relating to the technical provisions fund incurred by mutual guarantee companies will be deductible, charged to their profit and loss account, until the aforementioned fund reaches the minimum compulsory amount referred to in article 9 of Law 1/1994, of 11 March, on the Legal Regime of Mutual Guarantee Companies.Endowments in excess of the mandatory amounts shall be deductible at 75 per cent.

    Therefore, as soon as the technical provisions fund reaches this minimum amount, the expenses related to this fund will only be deductible at 75 per cent, so it will be necessary to enter in the box [00335] of increases, the amount of 25 per cent corresponding to these non-deductible expenses.