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Practical Handbook for Companies 2021

Filling in Form 200

Pursuant to the provisions of transitional provision 24.7 of the LIS and article 42 of the RDLeg. 4/2004 (or, where applicable, Article 36 ter of Law 43/1995 of 27 December 1995 on Corporation Tax), taxpayers must enter in box [00585] "Deduction DT 24ª.7 LIS and art. 42 RDLeg.4/2004" on page 14 of form 200, the amount of the deduction for reinvestment of extraordinary profits, which the taxpayer applies in the tax period covered by the return.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.

Completion of the table "Deductions Transitional provision 24.7 LIS and art. 42 RDLeg.4/2004" (page 16 of Form 200)

Taxpayers applying the deduction for reinvestment of windfall profits must complete this table as follows:

  • The column "Joint limit" expresses the joint percentage to be applied to the gross tax liability less deductions for double taxation and allowances (box [00582] "Positive adjusted gross tax liability" on page 14 of Form 200), to determine the maximum amount applicable in the tax period being declared.

  • The column "Year limit" indicates the last year in which the deduction may be applied, which will be the first of those indicated when the financial year coincides with the calendar year, provided that the financial year has a duration of twelve months.

  • In the column "Deduction pending/g1enerated", the amounts of the deduction generated both in the current tax period (2021) and in a period prior to the current one (2006 to 2020), and which are pending application at the beginning of the tax period being declared, shall be entered in the corresponding boxes.

    The row "Deduction DT 24ª.7 LIS 2021(*)" should only be completed if the entity has deductions pending application corresponding to a previous tax period started in 2021.

  • The column "Applied in this settlement" contains the part (or all, if applicable) of the amounts stated in the previous column "Deduction generated" relating to the deduction for reinvestment of extraordinary profits, which is applied in the settlement corresponding to the period being settled.

    A tener en cuenta:

    • The amounts entered in this column may not exceed the amounts resulting from applying to the gross tax liability, less deductions for double taxation and allowances (box [00582] "Positive adjusted gross tax liability") the limits established in each case by the rules governing the different deduction schemes.

    • In the box [00585] the total of the amounts entered in the column "Applied in this tax assessment" shall be included, which shall be transferred to box [00585] on page 14 of form 200 relating to the tax assessment.

  • In the column "Pending application in future periods" the positive difference between the amount of deductions pending at the beginning of the tax period or generated in the tax period in the column "Deduction pending/generated" and the amount of deductions applied in the assessment of the tax period being reported in the column "Applied in this assessment" should be entered. This amount will remain available for application in future tax periods, unless the tax period being declared is the last one in which the corresponding deduction can be applied, in which case the outstanding balance of the deduction will be lost.

    A tener en cuenta:

    According to the provisions of article 44 of the RDLeg.4/2004, the amounts corresponding to this deduction that were not deducted in the tax period in which they were generated, may be applied in the settlements of the tax periods that conclude in the 15 immediate and successive years, counted from the end of the tax period in which the deduction was generated.

    Consequently, the settlement corresponding to the 2021 tax period being declared is the last settlement in which the amounts not deducted in respect of this deduction that was generated in 2006 can be applied.