Skip to main content
Practical Handbook for Companies 2021

Public subsidies included in profit and loss for the year, not integrated in the taxable base

The second paragraph of Article 14.8 of of the LIS states that subsidies granted by public authorities to mutual guarantee societies and income deriving from such subsidies shall not be included in the tax base, provided that both are allocated to the technical provisions fund.The provisions of this section shall also apply to counter-guarantee companies with regard to the activities which, in accordance with the provisions of Article 11 of the Law on the Legal Regime of Mutual Guarantee Companies, must necessarily form part of their corporate purpose.

Filling in form 200

In application of the provisions of this precept, the taxpayer must make the following adjustments in the box [00368] "Public subsidies included in the result for the financial year, not to be included in the tax base (art. 14.8 LIS)" on page 12 of form 200:

  • In this box [00368], the amount of the subsidies that have been granted by the public administrations to the mutual guarantee societies should be included, as well as the amount of the income derived from them, if applicable, provided that both are allocated to the technical provisions fund.

  • Likewise, the amount of the subsidies granted by the Public Administrations to the counterguarantee companies, as well as the amount of the income derived from them, where applicable, should be included in the box [00368], provided that both are destined to the technical provisions fund and that they refer to the activities which, in accordance with the provisions of article 11 of Law 1/1994, of 11th March, on the Legal Regime of the Mutual Guarantee Companies, must necessarily be included in their corporate purpose.