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Practical Manual of Companies 2021.

Deduction for international double taxation of previous periods applied in the financial year (articles 31 and 32 LIS)

Filling in form 200

In box [00571] «Deduction for international double taxation of previous periods applied in the year (arts. 31 and 32 LIS )» , the balance pending deduction due to insufficient full quota will be recorded, relative to deductions to avoid international double taxation of articles 31 and 32 of the LIS , generated in the tax periods 2015 to 2020 or in a previous tax period starting in 2021 and that the taxpayer applies in the period subject to declaration. The amount entered in this box will be the one resulting from completing the breakdown table on page 16 of form 200 explained below.

Taxpayers who apply these deductions for international double taxation must complete this table in which they will record the amounts of the deductions to avoid international double taxation referred to in articles 31 and 32 of the LIS generated in the 2015 tax periods. 2016, 2017, 2018, 2019, 2020 and 2021(*), which have been or may be carried over to future tax periods due to insufficient quota, in the manner detailed below.

Completion of the table “LIS international double taxation deductions” (page 16 of form 200)

  • Inside block « DI international previous periods”, rows “DI international 2015» to «DI international 2020» , are planned to collect the amounts of deductions to avoid international double taxation, regulated in articles 31 and 32 of the LIS generated from 2015 to 2020, and which were transferable to subsequent tax periods due to insufficient full quota.

    The row «DI internal 2021(*)» must only be completed if the entity has deductions pending to apply corresponding to a previous tax period starting 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 that is subject to settlement and beginning in 2015, 2016 , 2017, 2018, 2019, 2020 and 2021(*), from block «DI international previous periods» , the balance of the corresponding deduction that was pending application at the beginning of the tax period that is the subject of settlement 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 of the tax period in which the deduction was generated.

  • In column "Tax type/generation period" the type of tax for which the reporting entity and beneficiary of the deduction was taxed in the period in which it was generated. This column does not exist for cases in which the tax period for generating the deduction corresponds to the tax period for settlement.

  • In column "2021 pending deduction" the amounts referring to pending deductions from previous periods must be collected. In the event that the tax rate applicable by the taxpayer beneficiary of the deduction in the tax period in which it was generated is different from the tax rate for which he is taxed in the tax period subject to settlement (collected in the row «Type of tax 2021 » ), the amount that must be entered in this column will be the result of multiplying that of the corresponding box in column "Pending deduction" for the fraction «Lien type 2021/Lien type generation period» .

    Keep in mind:

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

    If the 2021 tax rate and the generation period tax rate are the same , the amount entered in the "Pending deduction" column will be equal to the amount entered in the corresponding box in the column «2021 pending deduction».

  • In the column «Applied in this settlement» the part (or the entirety, if applicable) of the amount corresponding to the previous column will be collected « 2021 pending deduction» that is applied in the settlement corresponding to the period under settlement.

    Keep in mind:

    • For tax periods beginning on or after January 1, 2016, section 2 of the fifteenth Additional Provision of the LIS establishes that taxpayers whose net turnover is of at least 20 million euros during the 12 months prior to the date on which the tax period begins, they must take into account that the amount of the deductions to avoid international double taxation provided for in articles 31, 32 and section 11 of the Article 100 of the LIS, as well as 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 full amount.

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

      For these purposes, prior to completing this table "LIS international double taxation deductions" (except in cases where the table on page 21 of form 200 has already been completed), a breakdown window will open in the that the taxpayer must indicate whether the net amount of the turnover during the twelve months prior to the start date of the 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 moved to the box “Net amount of turnover for the twelve months prior to the start date 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 accounting corrections derived from the application of article 11.12 of the LIS, the compensation of negative tax bases and the compensation of contributions for losses of the cooperatives, so once the table on page 21 of model 200 is completed, it will not be shown on other screens.

    • In box box [00571] the total of the amounts entered in the column "Applied in this settlement" will be collected, which must be transferred to box [00571] on page 14 of form 200 regarding the settlement of the Tax.

  • In column "Pending application in future periods" the part of the corresponding deduction in column "2021 pending deduction" that is not included in the box corresponding to column “Applied in this settlement” . That is, it refers to the part of the deduction that, because it has not been applied in the settlement of the tax period being declared, remains pending to be applied in future tax periods.