Foreign tax paid by the taxpayer, non-deductible due to affecting income with deductions for double taxation

In application of the provisions of article 31.2 of the LIS , the taxpayer must make the following adjustments in boxes [00340] and [01589] "Foreign tax borne by the taxpayer, not deductible because it affects income with a deduction for double taxation (art. 31.2 LIS)" on page 13 of form 200:

• Whereas, since it affects positive income included in the tax base, obtained and taxed abroad by a tax (recorded as an expense) of an identical or similar nature to the Corporate Tax, and in relation to said income the taxpayer is entitled to the deduction to avoid international double taxation established in article 31.2 of the LIS, the amount of tax paid abroad will be included in box [00340] , as an increase correction, even if it was not fully deductible in the full tax quota.

  For these purposes, will be considered as a deductible expense that part of the amount of tax paid abroad that is not subject to deduction for double taxation in the full amount by application of the provisions of article 31.1 of the LIS, provided that it corresponds to the performance of economic activities abroad.

• In box [01589] of decreases, you must record the part of the tax paid abroad that has not generated a deduction for double taxation by exceeding the rate that would apply in Spain if the income had been obtained in Spanish territory, and provided that it corresponds to the performance of economic activities abroad.

  This adjustment is made because article 31.2 of the LIS establishes that that part of the amount of tax paid abroad that is not subject to deduction for double taxation in the full quota by application of the provisions of article 31.1 of the LIS will be considered as a deductible expense, provided that it corresponds to the performance of economic activities abroad.