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Practical Handbook for Companies 2021

Effects of non-fiscal accounting

The article 20 of the LIS establishes that when an asset or service is valued differently for accounting and tax purposes, the entity acquiring the asset or service shall include the difference between the two in its taxable base, as follows:

  1. In the case of assets included in current assets, in the tax period in which they give rise to the accrual of income or expenses.

  2. In the case of non-depreciable assets forming part of fixed assets, in the tax period in which they are transferred or derecognised.

  3. In the case of depreciable assets forming part of fixed assets, in the tax periods remaining in their useful life, applying to the aforementioned difference the depreciation method used for the aforementioned assets, unless they are transferred or retired beforehand, in which case they will be included when they are transferred or retired.

  4. In the case of services, in the tax period in which they are received, unless the amount is to be included in an asset, in which case the provisions of the preceding paragraphs shall apply.

Filling in form 200

In application of the provisions of this precept, in the tax period in which the acquirer of an asset item or service has a different accounting and tax valuation, the difference in both values must be included in the boxes [01015] and [01016] "Effects of the accounting valuation different from the tax valuation (article 20 LIS)" on page 12 of form 200.