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Practical Handbook for Companies 2021

Calculation of individual and group taxable bases

In line with the previous section, it should be reiterated that in the case of entities with branches taxed under the ZEC regime, the part of the taxable income of the entity forming part of a tax group attributable to the branch will not be included in the individual taxable income of the entity for the purposes of determining the taxable income of the tax group.

In general, in accordance with the provisions of article 62 a) of the LIS, the requirements or qualifications established both in the accounting regulations for the determination of accounting profit and in this Law for the application of any type of adjustment to it, in the terms established in article 10.3 of this Law, shall refer to the tax group.

So, first of all, the accounting result must be corrected in anything where the entity is in a fiscal group, the accounting requirements or qualifications must vary.This change is reflected in the new item "Corrections to the accounting result when considering the accounting requirements or qualifications referring to the tax group (art. 62.1 a) LIS)" which appears on page 12 of the model, box [01230] for increases and box [01231] for decreases.An example of adjustments that should be recorded in these boxes would be those arising from sales of shares in the parent entity of the group.

On the other hand, the requirements or qualifications established by the Corporate Income Tax Law to be applied to the accounting result will refer to the tax group.This implies that all adjustments to the accounting profit or loss shown on pages 12 and 13 of Form 200 under the heading "Details of adjustments to the profit or loss on the profit and loss account (excluding adjustment for IS)", should be group-criteria based.

Finally, Article 63 of the LIS establishes a series of special rules for the determination of the individual taxable income of the entities forming part of the group:

  1. The limit established in Article 16 of the LIS in relation to the deductibility of financial expenses shall refer to the tax group.That es, the boxes [00363] and [00364] on page 12 will be determined by the limit that the group should apply in relation to that entity.

  2. The capitalisation reserve referred to in Article 25 of the LIS will not be included in the individual tax bases.In other words, for the determination of the individual taxable base to be transferred to form 220, box [01032] on page 13 of form 200 shall not be considered.

  3. The allocations referred to in article 11.12 of the LIS shall not be included in the individual tax bases.

    For these purposes, the items "Impairment losses under art. 13.1 LIS and provisions and expenses (art. 14.1 and 14.2 LIS referred to in art. 11.12 LIS)" and "Application of the limit of art. 11.12 LIS to impairment losses under art. 13.1 LIS and provisions and expenses (art. 14.1 and 14.2 LIS)" should not be completed. In other words, boxes [00415], [00211], [00416] and [00543] on page 12 of form 200 should not be completed.

  4. The offsetting of tax losses that would have corresponded to the entity under the individual regime, which is included in box [00547] on page 13 of form 200, shall not be included in the individual tax bases.

  5. The equalisation reserve referred to in Article 105 of the LIS will not be included in the individual tax bases.In other words, the amount entered in boxes [01033] and [01034] on page 13 of Form 200 shall not be taken into account.

In short, as a result of the changes introduced by the LIS, it has been necessary to determine a specific individual tax base for entities taxed under the tax consolidation regime, specifically box [01029] on page 13 of form 200.In this way, the taxable amount to be transferred will be the one in box [01029] and not the one in box [00550].