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Practical Handbook for Companies 2021

Deductions for international double taxation of previous periods applied in the financial year (articles 31 and 32 RDLeg.4/2004)

Filling in form 200

In accordance with the provisions of section 4 of the twenty-third transitory provision of the LIS, in the box [00572] "Deductions for international double taxation of previous periods applied in the financial year (art. 31 and 32 RDLeg. 4/2004)", the balance pending deduction for insufficient tax liability, relating to deductions to avoid international double taxation generated in previous tax periods (2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013 and 2014) shall be recorded in accordance with the provisions of articles 31 and 32 of RDLeg.4/2004, which has been applied by the taxpayer in the reporting period.The amount entered in this box shall be the amount resulting from filling in the breakdown table on page 16 of Form 200 explained below.

The amount of this deduction shall be determined taking into account the tax rate in force in the tax period in which it is applied.

Completion of the table "International double taxation deductions RDLeg.4/2004" (page 16 of Form 200)

Taxpayers who apply these deductions for domestic double taxation must complete this table in which they must enter the amounts of deductions for the avoidance of international double taxation, generated in the financial years 2005 to 2014, and which have been or may be carried forward to future tax periods, as detailed below:

  • Within the block "D.I. previous years", the rows "D. I. international 2005" to "D. I. international 2014", are foreseen for deductions for international double taxation in accordance with the provisions of articles 31 and 32 of the RDLeg.4/2004 generated from 2005 to 2014, respectively, and which were carried forward to subsequent tax periods due to insufficient tax liability.

  • In the column "Deduction pending" it should be noted that, if it is a deduction generated in any of the tax periods prior to the one being settled and started in 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013 or 2014, from the block "D.I. internac.exerciseprevious periods", the balance of the corresponding deduction that was outstanding at the beginning of the tax period being settled shall be entered in the respective box in this column.In any case, this balance must be that relating to the tax rate of the tax period in which the deduction was generated.

  • In the column "Tax rate/period of generation" the tax rate at which the taxpayer, the beneficiary of the deduction, was taxed in the tax period in which the deduction was generated shall be shown.This column does not exist for cases where the tax period of generation of the deduction is the tax period being settled.

  • In the column "2021 Deduction pending" the amounts relating to deductions pending from previous years shall be included.In the event that the tax rate applicable by the taxpayer benefiting from the deduction in the tax period in which the deduction was generated is different from the tax rate applicable in the tax period under assessment (shown 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 the column "Deduction pending" by the fraction "Tax rate 2021/Tax rate generation period".

    To this effect, it is recalled that in section 4 of the twenty-third transitory provision of the LIS, according to which the amount of the deductions established in this provision and in articles 30, 31.1.b) and 32.3 of RDLeg.4/2004 shall be determined taking into account the rate of taxation in force in the tax period in which it is applied.

    A tener en cuenta:

    In general, the tax rate for the financial year 2021 shall be obtained by dividing the amount in box [00562] "Full tax liability" on page 14 of form 200 by the amount in box [00552] "Taxable base" on page 13 of form 200.

    In the case of generation of the deduction in accordance with article 31.1.a) of RDLeg.4/2004 or, in the case of having been generated in accordance with article 31.1.b) of RDLeg.4/2004 only when the tax rate of the tax period of generation is equal to that of the tax period under assessment, the amount entered in the column "Deduction pending" shall be equal to the amount entered in the corresponding box in the column "2021 deduction pending".

  • The column "Applied in this settlement" shall contain the part (or the whole, if any) of the corresponding amount from the previous column "2021 pending deduction" that is applied in the settlement of the tax period being settled.

    A tener en cuenta:

    • The application of this deduction has as limit the amount of the gross tax liability appearing in box [00562] on page 14 of form 200.

      For these purposes, according to the provisions of paragraph 2 of the fifteenth additional provision of the LIS, in periods commencing on or after 1 January 2016, for taxpayers whose net turnover is at least 20 million euros during the 12 months prior to the date on which the tax period commences, this amount may not exceed 50 per cent of the taxpayer's gross tax liability.

    • For tax periods commencing on or after 1 January 2019, information on the net turnover for the twelve months prior to the start date of the tax period must be included on page 21 of form 200, for the purposes of determining the application of the limit established in DA 15ª of the LIS.

      For these purposes, before filling in this table "International double taxation deductions (RDLeg.4/2004)" (except in cases where the table on page 21 of Form 200 has already been previously completed), a breakdown window will open in which the taxpayer must indicate whether the net turnover during the twelve months prior to the start date of the tax period has been less than EUR 20 million, at least EUR 20 million, but less than EUR 60 million or at least EUR 60 million.The option marked by the taxpayer shall be transferred to the table "Net turnover for the twelve months prior to the date of commencement of the tax period" on page 21 of form 200.

      The option marked by the taxpayer will also be taken into account to determine the limits in the calculation of the accounting corrections derived from the application of article 11.12 of the LIS, the offsetting of tax losses and the offsetting of contributions for losses of cooperatives, so that once the table on page 21 of form 200 has been completed, it will not be shown again on other screens.

    • In the box [00572] the total of the amounts entered in the column "Applied in this tax assessment" shall be included, which shall be transferred to box [00572] on page 14 of form 200 relating to the tax assessment.

  • The column "Pending application in future periods" is used to collect the part of the corresponding deduction from the column "2021 pending deduction" that was not included in the corresponding box in its next column.In other words, it refers to the part of the deduction which, because it has not been applied in the settlement of the tax period being declared, remains to be applied in future tax periods.