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Practical Handbook for Companies 2021

Accounting revaluations

The second paragraph of article 17.1 of the LIS establishes as a general rule that changes in value arising from the application of the fair value method have no tax effect, insofar as they are not to be taken to the profit and loss account, except for the following:

  • The provisions of article 15.l) of the LIS should be applied for tax periods starting on or after 1 January 2017,

  • should not be allocated to a reserve account if required by law or regulation, for tax periods beginning on or after 1 January 2018.

Filling in form 200

If the taxpayer makes an accounting revaluation not covered by a legal or regulatory rule, the following adjustments must be made in the boxes [00345] and [00346] "Accounting revaluations (art. 17.1 LIS)" on page 12 of form 200:

  • In the tax period in which the revaluation of the item has been booked to the profit or loss for the year, the amount of the revaluation should be included in the box [00346] of decreases.

  • In the tax period that accounts for expenses linked to the revalued assets, the amount of these expenses should be included in the box [00345] of increases.In case you are posting income, this amount should be included in the box [00346] of decreases.