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Practical Manual of Companies 2021.

Subdivision option in cases of change of residence (art. 19.1 LIS)

With effect for tax periods beginning on or after January 1, 2021 , is replaced in cases of change of residence of an entity to a Member State of the European Union or the European Economic Area that has concluded an agreement with Spain or with the European Union on mutual assistance in the collection of tax credits, the possibility that the taxpayer had to defer the payment of the tax debt resulting from the application of the provisions of the first paragraph of article 19.1 of the LIS , until the affected assets are transferred to third parties, for the possibility of dividing said payment , also at the taxpayer's request, into equal annual fifths .

The exercise of the option will be carried out exclusively in the Corporate Tax return corresponding to the tax period concluded on the occasion of the change of residence, taking into account that the payment of The first fraction must be made within the voluntary declaration period corresponding to said tax period. The expiration and enforceability of the four remaining annual installments will be required together with the late payment interest accrued for each of them, successively after one year from the end of the voluntary declaration period corresponding to the last tax period. Furthermore, the constitution of guarantees will be required when the existence of rational indications that the collection of the debt could be frustrated or seriously hindered is justified.

The subdivision will lose its validity in the following cases:

  1. When the affected assets are transferred to third parties.

  2. When the affected assets are subsequently transferred to a third State other than those indicated in the second paragraph of article 19.1 of the LIS.

  3. When the taxpayer subsequently transfers his tax residence to a third State other than those indicated in the second paragraph of article 19.1 of the LIS.

  4. When the taxpayer is in liquidation or is involved in a collective execution procedure, such as bankruptcy, or any equivalent procedure.

  5. When the taxpayer does not make the payment within the period provided for in the installment.

Filling in form 200

When the entity chooses to split the payment of the tax debt in the terms established in article 19.1 of the LIS, in addition to checking the box [00037] «Option to split art. 19.1 LIS" on page 1 of form 200, in the event that the entity pays taxes exclusively to the State Administration , it must complete section "Option to split into cases of changes of residence (art. 19.1 LIS)» on page 14 bis as detailed below:

  • In box [01588] “Amount integrated into the tax base (State)”, the amount of the difference between the market value and the tax value of the transferred assets must be entered. collected in boxes [01572] and [01573] "Change of residence to Member States of the European Union or EEA (art. 19.1 LIS)" on page 12 of form 200 for cases of change of residence to a Member State of the European Union or the European Economic Area, but only the part of this adjustment that corresponds to the State Administration.

  • For the calculation of the amount to be entered in box [02481] «Tax debt resulting from the fractionation art. 19.1 LIS (State)" it will be necessary for the entity to calculate separately the amount of the box [01586] "Result of the self-assessment (State)" with the same data contained in this self-assessment, but without including the amount of the adjustment entered in the boxes [01572] and [01573] "Change of residence to Member States of the European Union or EEA (art. 19.1 LIS)" on page 12 of form 200, in such a way that the amount to be completed in this box [02481] will be the result of subtracting from the box [01586] "Result of the self-assessment (State)" on page 14 bis contained in this self-assessment, the amount of the same box of the self-assessment calculated separately without including the adjustment that gives This division takes place according to article 19.1 of the LIS.

  • In box box [02483] “1st fractionation (State)” the amount of box [02481] “Tax debt resulting from fractionation art. 19.1 LIS (State)» divided by five:

    [02483] = [02481] / 5

  • In box [02485] «Result of the self-assessment including the 1st division of art. 19.1 LIS (State)» the amount resulting from the following operation must be entered:

    [02485] = [01586] - [02481] + [02483]

In the event that the entity pays taxes to one or more Provincial Councils of the Autonomous Community of the Basque Country and/or Navarrese Provincial Community , the boxes [02480] «Amount integrated into the tax base ( d. Forales/Navarra)»,[02482] «Tax debt resulting from fractionation art. 19.1 LIS (D. Forales/Navarra)", [02484] "1st division D. Forales/Navarra)" and [02486] "Result of the self-assessment including the 1st division of art. 19.1 LIS (D. Forales/Navarra)", must be completed in the same way through the table determining the liquid to be entered or returned to each of the Foral Administrations on page 26 of form 200.

Liquid to enter

Within the voluntary period for submitting the Corporate Tax declaration, the entity may modify the amount of the installment declared in the original self-assessment, provided that it results in more income, by submitting a complementary self-assessment. In order to modify the amount of the declared installment and calculate the difference to be entered with respect to the amount of the installment declared in the original self-assessment, the entity must complete section "Option of installment in cases of change of residence (art. 19.1 LIS)» on page 14 bis of model 200, section “Liquid to be entered” as detailed below:

  • In the event that the entity pays taxes exclusively to the State Administration, in box box [02487] «Complementary: Result of the self-assessment including the 1st division of art. 19.1 LIS from previous self-assessments corresponding to the 2021 tax period (State)", the amount you have completed must be entered in box [02485] "Result of the self-assessment including the 1st division of art. 19.1 LIS (State)» on page 14 bis of the original self-assessment.

    In the event that the entity pays taxes to one or more Provincial Councils of the Autonomous Community of the Basque Country and/or Navarra Foral Community, in box box [02488] «Complementary: Result of the self-assessment including the 1st division of art. 19.1 LIS from previous self-assessments corresponding to the 2021 tax period (D. Forales/Navarra)", you must enter the amount you have completed in box [02486] "Result of the self-assessment including the 1st installment of art. 19.1 LIS (D. Forales/Navarra)» on page 14 bis of the original self-assessment.

  • In the event that the entity pays taxes exclusively to the State Administration, in box box [02489] «Liquid to be entered including the 1st division of art. 19.1 LIS (State)", the amount resulting from subtracting from box [02485] "Result of the self-assessment including the 1st installment of art. 19.1 LIS (State)", the amount of box [02487] "Complementary: Result of the self-assessment including the 1st division of art. 19.1 LIS from previous self-assessments corresponding to the 2021 tax period (State)».

    In the event that the entity pays taxes to one or more Provincial Councils of the Autonomous Community of the Basque Country and/or Navarra Foral Community, in box box [03242] «Liquid to be entered including the 1st division of art. 19.1 LIS (D. Forales/Navarra)", the amount resulting from subtracting from box [02486] " Result of the self-assessment including the 1st division of art. 19.1 LIS (D. Forales/Navarra)», the amount of box [02488] «Complementary: Result of the self-assessment including the 1st division of art. 19.1 LIS from previous self-assessments corresponding to the 2021 tax period (D. Forales/Navarra).

    Keep in mind:

    Boxes [02489] and [03242] are not to be completed exclusively for cases in which the entity submits a complementary self-assessment in order to modify the amount of the installment declared in the original self-assessment. If the entity does not present said complementary self-assessment, the amount entered in boxes [02489] and [03242] will coincide with that entered in boxes [02485] and [02486].

Example:

Company "A", which does not carry out operations in regional territories, has obtained profits of 60,000 euros in 2021 in the exercise of its activity. On December 31 of that same year, he moved his residence from Spain to France and decided to apply the splitting of part of the tax debt in the terms described in article 19.1 of the LIS. Among its assets is machinery with a market value of 15,000 euros, but for tax purposes it is valued at 10,000 euros. This machinery will be moved to France to continue using it in its activity. How should company "A" complete form 200 to opt for said fractionation?

Answer:

First of all, in order to opt for the splitting of part of the tax debt under the terms provided for in article 19.1 of the LIS, Company "A" must check the box [00037] "Option for splitting at. 19.1 LIS» on page 1 of form 200 corresponding to fiscal year 2021, as this is the last tax period in which said company will be a taxpayer of Corporate Income Tax.

In addition, Company "A" must make a permanent positive correction to the result of the profit and loss account in the amount of 5,000 euros, which is the result of the difference between the market value and the tax value in accordance with article 19.1 of the LIS. This correction must be entered in the increase box [01572] "Change of residence to Member States of the European Union or EEA (art. 19.1 LIS)" on page 12 of form 200, according to the following calculations:

Market value: 15,000 euros

Tax value: 10,000 euros

Value difference: 5,000 euros

Box [01572] «Change of residence to Member States of the European Union or EEA (art. 19.1 LIS)»: + 5,000 euros

Company "A" has completed its self-assessment by entering the following information:

Result of the profit and loss account: 60,000 euros

Correction to the result of the profit and loss account: + 5,000 euros

Taxable base: 65,000 euros

Tax rate: 25%

Full fee: 16,250 euros

Self-assessment result (box [01586]): 16,250 euros

Liquid to enter or return (box [00621]): 16,250 euros

Company "A", having opted to split part of the tax debt in the terms provided for in article 19.1 of the LIS, will also have to complete the section "Option for splitting in cases of change of residence (art. 19.1 LIS). )» on page 14 bis of model 200, although, for the calculation of box [02481] «Tax debt resulting from fractionation art. 19.1 LIS" it will be necessary that, separately, Company "A" calculates the amount of box [01586] "Result of the self-assessment (State)" with the same data contained in the self-assessment, but without including the amount of the adjustment entered in box [01572] "Change of residence to Member States of the European Union or EEA (art. 19.1 LIS)" on page 12 of form 200 for the amount of 5,000 euros. In this way, the amount to be completed in box [02481] will be the result of subtracting from box [01586] "Result of the self-assessment (State)" on page 14 bis contained in this self-assessment, the amount of the same box of the self-assessment calculated separately without including the adjustment that gives rise to this fractionation according to article 19.1 of the LIS.

Therefore, the calculation that Company "A" must carry out separately will be the following:

Result of the profit and loss account: 60,000 euros

Correction to the result of the profit and loss account: 0

Taxable base: 60,000 euros

Tax rate: 25%

Full fee: 15,000 euros

Self-assessment result (box [01586]): 15,000 euros

Liquid to enter or return (box [00621]): 15,000 euros

Taking these data into account, Company “A” must enter in box [02481] “Tax debt resulting from the fractionation art. 19.1 LIS (State)» the amount of 1,250 euros, which results from subtracting from the box [01586] of the self-assessment that we want to present incorporating the adjustment of 5,000 euros less the box [01586] of the self-assessment calculated separately without incorporating the adjustment of 5,000 euros, that is, 1,250 euros (16,250 – 15,000).

Finally, in accordance with the above, Company "A" must complete the section "Option for fractionation in cases of change of residence (art. 19.1 LIS)" on page 14 bis of form 200 with the following amounts:

Amount integrated into the tax base (State) (box [01588]): 5,000 euros

Tax debt resulting from fractionation art. 19.1 LIS (State) (box [02481]): 1,250 euros (16,250 – 15,000)

1 Subdivision (State) (box [02483]): 250 euros (1,250 / 5)

Result of the self-assessment including the 1st division of art. 19.1 LIS (State) (box [02485]): 15,250 euros (16,250 – 1,250 + 250)

Liquid to be entered including the 1st division of art. 19.1 LIS (State) (box [02489]): 15,250 euros