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Practical Manual for Companies 2021.

Deduction for internal double taxation of previous periods applied in the financial year (DT 23.1 LIS)

Section of the twenty-third transitional provision of the LIS establishes a transitional regime to determine the deduction to avoid internal double taxation on dividends obtained from participation in the capital or equity of entities resident in Spanish territory, acquired in tax periods before January 1, 2015.

Filling in form 200

In application of the provisions of section 1 of the twenty-third transitional provision of the LIS, in box [01344] "Deduction for internal double taxation of previous periods applied in the year ( DT 23.1 LIS)" on page 14 of form 200, the outstanding balance of the deduction due to insufficient full quota will be recorded, corresponding to the deductions to avoid internal double taxation referred to in section 1 of the twenty-third transitional provision of the LIS generated in tax periods prior to 1 January 2015, which has been applied by the taxpayer in the tax period subject to declaration. The amount entered in this box will be the result of completing the breakdown table on page 15 of form 200 explained below.

Completing the table “Domestic double taxation deductions (DT 23.1 LIS)” (page 15 of form 200)

Taxpayers who apply this deduction for internal double taxation must complete block « DI in this table internal previous exercises» in the manner detailed below:

  • Rows «DI internal 2015», «DI internal 2016», «DI internal 2017», «DI internal 2018», «DI internal 2019» and «DI internal 2020» , are intended to collect the amounts of the deductions to avoid internal double taxation regulated in the twenty-third transitional provision of the LIS generated in 2015, 2016, 2017, 2018, 2019 and 2020, and which were transferable to subsequent tax periods due to insufficient full quota.

    Row «DI internal 2021(*)» should only be completed if the entity has deductions pending application corresponding to a previous tax period that began in 2021.

  • In column "Pending deduction" it must be taken into account that, if it is a deduction generated in any of the tax periods prior to the one being settled and started in 2015, 2016, 2017, 2018, 2019, 2020 or 2021 of the block "DI internal tax from previous years", the balance of the corresponding deduction that was pending application at the beginning of the tax period being settled will be entered in the respective box of this column.

    In any case, said balance must be the one corresponding to applying the tax rate for the tax period in which the deduction was generated.

  • Therefore, in column "Tax rate/generation period" the tax rate for which the reporting entity and beneficiary of the deduction paid taxes in the period in which it was generated will be stated. This column does not exist for cases in which the tax period for generating the deduction corresponds to the tax period of the liquidation.

  • In column "2021 pending deduction" the amounts referring to pending deductions from previous years must be included. In the event that the tax rate applicable to the taxpayer benefiting from the deduction in the tax period in which it was generated is different from the tax rate under which it is taxed in the tax period to be settled (listed in the row "Tax rate 2021"), the amount to be entered in this column will be the result of multiplying the amount in the corresponding box in column "Pending deduction" by the fraction "Tax rate 2021/Tax rate generation period" .

    In general, the tax rate corresponding to fiscal year 2021 will be obtained by dividing the amount in box [00562] "Full amount" on page 14 of form 200 by the amount in box [00552] "Taxable base" on page 13 of form 200.

    If the tax rate for the tax period being settled and the tax rate for the generation period are the same , the amount entered in the “Pending deduction” column will be equal to that entered in the corresponding box in the “2021 pending deduction” column.

  • In column "Applied in this settlement" the part (or the whole, if applicable) of the amount corresponding to the previous column " 2021 pending deduction" that is applied in the settlement corresponding to the period subject to settlement will be recorded.

    Keep in mind:

    • When completing this column the amount of the full quota that appears in box [00562] "Full quota" on page 14 of form 200.

      For tax periods beginning on or after 1 January 2016, section of the Fifteenth Additional Provision of the LIS establishes that taxpayers whose net turnover is at least 20 million euros during the 12 months prior to the date on which the tax period begins, must take into account that the amount of the deductions to avoid international double taxation provided for in articles 31, and section 11 of article 100 of the LIS, as well as the amount of those deductions to avoid double taxation referred to in the twenty-third transitional provision of this Law, may not jointly exceed 50 percent of the taxpayer's total amount.

    • For tax periods starting on or after January 1, 2019 , information on the net amount of turnover for the twelve months prior to the start date of the tax period must be included on page 21 of Form 200, in order to determine the application of the limit established in DA 15 of the LIS.

      For these purposes, prior to completing this table "Domestic double taxation deductions (DT 23 LIS)" (except in cases where the table on page 21 of form 200 has already been completed), a breakdown window will open in which the taxpayer must indicate whether the net amount of turnover during the twelve months prior to the start date of tax period has been less than 20 million, at least 20 million euros, but less than 60 million or at least 60 million euros. The option marked by the taxpayer will be transferred to the box "Net turnover for the twelve months prior to the start date of the tax period" on page 21 of form 200.

      The option selected by the taxpayer will also be taken into account to determine the limits in the calculation of accounting corrections arising from the application of article 11.12 of the LIS, the compensation of negative tax bases and the compensation of quotas for losses of cooperatives, so once the table on page 21 of form 200 has been completed, it will not be displayed again on other screens.

    • In box [01344] the total amounts entered in the column "Applied in this settlement" will be recorded, which must be transferred to page 14 of form 200 regarding the settlement of the Tax.

  • In column "Pending application in future periods" the part of the deduction corresponding to column "2021 pending deduction" that was not included in the box corresponding to column "Applied in this settlement" will be collected. That is, it refers to the part of the deduction that, because it was not applied in the settlement of the tax period subject to declaration, remains pending application in future tax periods.