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Practical Handbook for Companies 2021

Corporation Tax adjustments

The need to apply this correction in the boxes [00301] and [00302] "Corrections for Corporate Income Tax" on page 12 of form 200, is imposed by the different consideration that the accounting and tax rules have on Corporate Income Tax quotas.Thus, the accounting rule considers that the amount of the corporate income tax liability shall be computed in the profit and loss account as an expense or income item, depending on whether the account or set of accounts representing this item has a debit or credit balance, respectively.

On the other hand, article 15.b) of the LIS establishes that the expenses arising from the accounting of corporation tax are not deductible for tax purposes and that those arising from such accounting are not considered as income.

Filling in Form 200

  • In the box [00326] on page 8 "Profit and loss account" of this form refers to "Taxes on profits", and therefore, in addition to Corporate Income Tax, it may include taxes on profits obtained abroad, such as taxes on income obtained abroad through a permanent establishment, taxes on income obtained abroad without a permanent establishment, or taxes particularly on dividends or shares in the profits of foreign companies.

    Likewise, the SOCIMI shall include in this box the amounts resulting from applying the following special taxes on profits considered as a share of corporate income tax:

    • The 19 per cent on the full amount of dividends or shares in profits distributed to shareholders when the shareholding in the company's share capital is equal to or greater than 5 per cent and these dividends are exempt or taxed at a rate of less than 10 per cent.The amount of this tax must be self-assessed and paid on form 217.

    • The 15 per cent on the amount of the profits obtained in the year that is not subject to distribution, in the part that comes from income that has not been taxed at the general corporate income tax rate nor is it income subject to the 3-year reinvestment period regulated in letter b) of article 6.1 of Law 11/2009.The amount of this tax must be self-assessed and paid on form 237.

  • The amount to be entered in box [00328] "Profit for the year from discontinued operations net of tax" shall correspond to a part of the corporate income tax liability not included in the aforementioned box [00326].

Therefore:

  • From the amount entered in box [00326] and considering the positive or negative sign attributable to it, the taxes on profits obtained abroad (with their sign) and, if applicable, the amounts of the special taxes applied by the SOCIMIs (with their sign) must be algebraically subtracted.Simultaneously, to this amount (with its sign) shall be added algebraically the part of the corporate income tax (with its sign) corresponding to the profit or loss for the year from discontinued operations net of tax.

  • If, after carrying out the aforementioned operations of algebraic addition and subtraction on the aforementioned amount in the box [00326], the resulting amount is:

    • Positive, the corporate income tax liability that the resulting amount represents will be considered as additional income as it is a credit in favour of the taxpayer.In this way, in the box [00302] on page 12 of the model settlement, this amount should be included as a reduction in the profit and loss account.

    • Negative, the corporate income tax liability it represents will have been treated as an accounting expense.Thus, in the box [00301] on page 12 of the model settlement, this amount should be included as an increase in the profit and loss account.

      In any case, the aforementioned algebraic operations on the amount entered in box [00326] shall only be carried out for the purpose of making corrections to boxes [00301] and [00302].

A tener en cuenta:

Finally, it should be noted that references to box [00326] made in this section should be understood as references to the following boxes:

  • Box [00258] on page 30 of the model, in the case of institutions obliged to keep their accounts in accordance with the rules of the Bank of Spain.

  • Box [00379] on page 40 of the model, for insurance entities to which the Accounting Plan approved by Royal Decree 1317/2008, of 24 July, is compulsory.

  • Box [00242] on page 46 of the model, in the case of collective investment institutions, with the application of Circular 3/2008, of 11 September, of the National Securities Market Commission, as well as in the case of other entities that apply the model of accounts established in that Circular.

  • Box [00193] on page 51 of the model, for mutual guarantee companies.