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Practical Handbook for Companies 2021

Exceptions to limiting the offsetting of negative tax bases

The limitation on the offsetting of tax bases referred to in the previous section, will not apply in the following cases:

  • In any case, may offset in the tax period tax losses up to the amount of 1 million euros.

    In the event that the tax period has a duration of less than one year , the tax losses that may be offset in the tax period, as established in the previous paragraph, will be the result of multiplying 1 million euros by the proportion existing between the duration of the tax period and the year.

  • The limitation on the offsetting of tax losses does not apply to the amount of income corresponding to waivers as a result of an agreement with creditors not related to the taxpayer .

    A tener en cuenta:

    Tax losses which are offset against such income shall not be taken into account in respect of the amount of EUR 1 million referred to above.

  • This limitation shall also not apply in the tax period in which the entity is wound up, unless this is the result of a restructuring operation to which the special tax regime established in Chapter VII of Title VII of this Law is applicable.

    A tener en cuenta:

    Entities that do not apply the limit established for the offsetting of tax losses in accordance with the provisions of the previous paragraph, must tick box [00072] "Discontinuation of the entity" on page 1 of form 200 in the tax period covered by the tax return in which its extinction occurs.

  • In the case of newly created entities as referred to in Article 29.1 of the LIS, the limitation on the offsetting of tax bases shall not apply in the first 3 tax periods in which a positive tax base is generated prior to its offset.

    A tener en cuenta:

    These newly created entities that do not apply the limit established for the offset of tax losses in accordance with the provisions of the previous paragraph, must tick box [00070] "Offset of tax losses for newly created entities (art. 26.3 LIS)" on page 1 of form 200.

  • Finally, this limitation will not apply to the amount of income corresponding to the reversal of impairment losses that are included in the tax base by application of the provisions of the eighth transitional provision of the LIS, provided that the impairment losses deducted during the tax period in which the tax losses to be offset were generated have represented at least 90 per cent of the deductible expenses of that period.

    In the event that the entity has tax losses generated in several periods commencing prior to 1 January 2013, this requirement may be met by means of the aggregate computation of all the deductible expenses of those tax periods.