Temporary negative adjustments originating in previous years
In the event that the taxpayer has to make a correction to the result of the Profit and Loss Account that involves a temporary negative correction originating from previous years, when completing the corresponding box on pages 12 and 13, it will be displayed simultaneously in the Companies WEB form the breakdown table “Details of the corrections to the result of the profit and loss account (excluding the correction for Corporate Tax)” on page 19 of form 200. This information, once completed, will be grouped in the detail table contained on pages 26 bis to 26 exies of model 200.
In this case, the box corresponding to decreases in temporary corrections originating in previous years must be completed in the part of the table dedicated to Corrections for the year.
Likewise, the Future decreases of temporary corrections box must be completed in the columns corresponding to “Outstanding balance at the beginning of the year” and “Outstanding balance at end of year" because the positive adjustment at source reverts through negative extra-accounting adjustments, which implies future decreases in the tax base. Regarding the Future Decreases box in column "Outstanding balance at the beginning of the year" , it must be completed for the same amount that was entered in the Future decrease box in the “Outstanding balance at the end of the year” column of the settlement of the previous tax period. On the other hand, with respect to the column « Outstanding balance at the end of the financial year » the future decreases box must be completed. The balance in this box will decrease until it becomes zero, when the entire amount has been reversed.
For all of the above, during the tax periods in which the correction reverts because it has its origin in previous years, in the part of the table corresponding to « Pending balance in order to exercise» , the box for Future decreases of Temporary corrections will decrease its value with respect to the Balance of the previous year in the amount of the negative correction for this year. For these purposes, the "Outstanding balance at the end of the year" will reflect the total amount pending to be reversed in subsequent years. Since this balance is included in the part of future decreases, it tells us that this amount is reversing through negative off-the-books adjustments.
Example:
Starting from the example posed in the case of positive temporary correction originating in the year, we continue with the years 2024 to 2030 .
Company "C" has acquired new machinery for an amount of 200,000 euros. The acquisition is carried out on January 1, 2022 , the date on which such elements are made available to Company "C" and come into operation. The financial year of Company "C" coincides with the calendar year. It is estimated that the residual value of the elements is not significant, so the amortizable value coincides with the acquisition price.
The accounting provision for amortization is made by applying a coefficient of 50 percent, which the company estimates as effective depreciation of such elements. Company "C" decides to depreciate the machinery for tax purposes in accordance with the table contained in article 12.1.a) of the LIS , that is, it will apply a coefficient of 12 percent.
In application of the provisions of article 12.1 of the LIS, the following adjustments will have to be made in boxes [00303] and [00304] «Differences between accounting and tax amortization (art. 12.1 LIS)» on page 12 of model 200:
| Financial year | Accounting amortization | Tax amortization | Correction | Form 200 | Balance at year-end |
|---|---|---|---|---|---|
| 2022 | 200,000 x 50% = 100,000 | 200,000 x 12% = 24,000 | 76,000 | [00303] | -76,000.00 |
| 2023 | 200,000 x 50% = 100,000 | 200,000 x 12% = 24,000 | 76,000 | [00303] | -152,000.00 |
| 2024 | --- | 200,000 x 12% = 24,000 | -24,000 | [00304] | -128,000.00 |
| 2025 | --- | 200,000 x 12% = 24,000 | -24,000 | [00304] | -104,000.00 |
| 2026 | --- | 200,000 x 12% = 24,000 | -24,000 | [00304] | -80,000.00 |
| 2027 | --- | 200,000 x 12% = 24,000 | -24,000 | [00304] | -56,000.00 |
| 2028 | --- | 200,000 x 12% = 24,000 | -24,000 | [00304] | -32,000.00 |
| 2029 | --- | 200,000 x 12% = 24,000 | -24,000 | [00304] | -8,000.00 |
| 2030 | --- | 8,000 | -8,000 | [00304] | 0.00 |
Total tax amortization = 24,000 x 8 + 8,000 = 200,000
Total accounting amortization = 100,000 + 100,000 = 200,000
The tax correction that Company "C" will carry out to determine the tax base of the Corporate Tax corresponding to 2024 (which will be collected in box [00304] ) will be the following:
| Accounting amortization | Tax amortization | Decrease in the result of the profit and loss account |
|---|---|---|
| 0 | 200,000 x 12% = 24,000 | 24,000 |
In fiscal year 2024 , the machinery is amortized for accounting purposes , therefore, a is generated negative extra-accounting adjustment ##4##that must be entered in box [00304] of decreases, as a consequence of the reversal of the positive adjustment , for the amount of the tax amortization , that is, for the value of 24,000 euros. This is a Temporary negative correction originating from previous years.
In the WEB Companies form, in the period 2024 , when the box [00304] is to be completed, the table on page 19 of form 200 will be displayed and the Decreases in Shares box must be completed. " Temporary corrections originating from previous years" of the part of the table dedicated to "Corrections for the year" in the amount of 24,000 euros. The form will transfer the completed information to box box [02568] “Temporary (originating in previous years)” on page 26 bis of form 200.
Likewise, the part corresponding to « Outstanding balance at the beginning of the year » must be completed in the table on page 19. As we are dealing with a positive adjustment at origin , the box for Future decreases of Temporary corrections must be completed amount of 152,000 euros since this is the value of the future decrease box in the " Outstanding balance at the end of the year" column of fiscal year 2023 , that is, the accumulated of 2022 and 2023 .
Regarding the part corresponding to " Outstanding balance at the end of the year" , as it is a positive adjustment at source , the box must be completed future decreases of Temporary corrections in the amount of 128,000 euros (152,000 – 24,000) which is the outstanding balance at the beginning of the year reduced by the reverted amount of 24,000 euros in the financial year 2024 . The form will transfer the completed information to box box [02570] “Outstanding balance at year-end” on page 26 bis of form 200.
Detail of the corrections to the result of the profit and loss account (excluding the correction for IS ) (page 19 of model 200)
| Total | --- | 152,000 | --- | 24,000 | --- | 128,000 |
| Fiscal year 2024 tax corrections | Outstanding balance at beginning of year | Exercise corrections | Outstanding balance ending of fiscal year | |||
|---|---|---|---|---|---|---|
| Future increases | Future declines | Increases | Decreases | Future increases | Future declines | |
| Permanent fixes | --- | --- | --- | --- | --- | --- |
| Temporary corrections with origin in the year |
--- | 152,000 | --- | --- | --- | 128,000 |
| Temporary corrections originating in previous years |
--- | 24,000 | ||||
Detail table of the corrections to the result of the profit and loss account (excluding the correction by the IS) (page 26 bis to 26 e of model 200)
| Settings detail | Type | Outstanding balance at the beginning of the year | Exercise corrections | Outstanding balance at year-end | ||||
|---|---|---|---|---|---|---|---|---|
| Permanent | Temporary (origin during the year) | Temporary (origin in previous exercises ) | ||||||
| Differences between accounting amortization and tax amortization (art. 12.1 LIS) |
INCREASE | --- | --- | --- | --- | --- | ||
| Differences between accounting amortization and tax amortization (art. 12.1 LIS) |
DECREASE | [02569] 152,000 | --- | --- | [02568] 24,000 | [02570] 128,000 | ||
In the years from 2025 to 2029 , the adjustments will be the same as those set out for 2023, with the difference that the « Outstanding balance at the end of the year» , in the box Future decreases of Temporary corrections , the amount will go decreasing in each financial year at a rate of 24,000 euros each year, until reaching 8,000 euros in 2029 .
In fiscal year 2030 , in the WEB Companies form, when box is to be completed ##3##[00304] ##4##The table on page 19 of model 200 will be displayed and the box for Decreases of « Temporary corrections with origin must be completed in previous years" of the part of the table dedicated to "Corrections for the year" for the amount of 8,000 euros, since this is the amount pending tax amortize . The form will transfer the completed information to box box [02568] “Temporary (originating in previous years)” on page 26 bis of form 200. On the other hand, with respect to the part corresponding to " Outstanding balance at the end of the year" , the Future decreases box must be completed in Temporary corrections worth 0 euros (8,000 – 8,000), since there is no outstanding balance due to the fact that in this year they have reversed the 8,000 euros that remained as outstanding balance on 2029 . The form will show 0 in box [02570] “Outstanding balance at the end of the year” on page 26 bis of form 200.
Detail of the corrections to the result of the profit and loss account (excluding the correction by the IS) (page 19 of model 200)
| Total | --- | 8,000 | --- | 8,000 | --- | --- |
|
Fiscal year 2030 | Outstanding balance at beginning of year | Exercise corrections | Outstanding balance ending of fiscal year | |||
|---|---|---|---|---|---|---|
| Future increases | Future declines | Increases | Decreases | Future increases | Future declines | |
| Permanent fixes | --- | --- | --- | --- | --- | --- |
| Temporary corrections with origin in the year |
--- | 8,000 | --- | --- | --- | --- |
| Temporary corrections originating in previous years |
--- | 8,000 | ||||
Detail table of the corrections to the result of the profit and loss account (excluding the correction by the IS) (page 26 bis to 26 e of model 200)
| Settings detail | Type | Outstanding balance at the beginning of the year | Exercise corrections | Outstanding balance at year-end | ||||
|---|---|---|---|---|---|---|---|---|
| Permanent | Temporary (origin during the year) | Temporary (origin in previous exercises ) | ||||||
| Differences between accounting amortization and tax amortization (art. 12.1 LIS) |
INCREASE | --- | --- | --- | --- | |||
| Differences between accounting amortization and tax amortization (art. 12.1 LIS) |
DECREASE | [02569] 8,000 | --- | --- | [02568] 8,000 | [02570] 0 | ||