Temporary positive adjustments originating in the financial year
In the event that the taxpayer has to make a correction to the result of the Profit and Loss Account that entails a positive temporary correction originating in the year to the accounting result, by completing the corresponding box on pages 12 and 13, the will simultaneously show in the WEB Companies 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 « Increases in temporary corrections originating in the year » in the table part of the page must be completed. 19 of model 200 dedicated to “Corrections of the exercise”. Likewise, the box for future reductions of temporary corrections in the row corresponding to "Outstanding balance at the end of the year" must be completed. The reason is that, although it is a positive adjustment at origin, will revert through negative extra-accounting adjustments, this means that this temporary positive correction originating in the year will entail future decreases in the base taxable, therefore, in the column "Pending balance at the end of the year", the decreases box must be completed, so that year after year the balance increases if the adjustment continues to be at origin or decreases, if that adjustment has begun to reverse, but always in the column of « Future decreases » . Once the first tax period in which the adjustment is made has elapsed, in the following settlements the box for future decreases in the column "Pending balance at the beginning of the year" must be completed with the the same amount that was entered in the future decreases box of the "Outstanding balance at the end of the year" column of the settlement of the previous tax period.
For all of the above, during the tax periods in which the correction has origin in the year itself, in the part of the table corresponding to the "Outstanding balance at the end of the year", the box of «D is future reductions of temporary fixes » will go increasing its value with respect to the Balance of the previous year by the amount of the positive correction for this year. With all this, the "Outstanding balance at the end of the year" will reflect the total amount pending to be reversed in subsequent years through negative extra-accounting adjustments.
Example:
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" depreciates the machinery for tax purposes in accordance with the table contained in art. 12.1.a) of the LIS , that is, a coefficient of 12 percent will apply.
In accordance with what is stated on the 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 the model 200 of exercises 2022 to 2030 .
| 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 2022 (box [00303]) will be the following:
| Accounting amortization | Tax amortization | Increase in the result of the profit and loss account |
|---|---|---|
| 200,000 x 50% = 100,000 | 200,000 x 12% = 24,000 | 76,000 |
In fiscal year 2022 , as the accounting amortization carried out in the fiscal year by the taxpayer is higher than tax-admitted amortization as established in article 12.1 of the LIS, the amount of this excess difference must be entered in box [00303] « Differences between accounting and tax amortization (art. 12.1 LIS)» of increases, specifically, in 2022 a positive extra-accounting adjustment must be made in the amount of 76,000 euros. A Positive temporary correction has been generated originating from the year.
Likewise, when the machinery in subsequent tax periods is amortized on an accounting basis , the amount of the negative adjustment originating in previous years must be recorded in the box [00304] “Differences between accounting and tax amortization (art. 12.1 LIS)” of decreases, as a consequence of the reversal of the positive adjustment. The value to be included in that box will be the amount of the tax amortization.
In the WEB Companies form, in the period 2022 when box [00303] is to be completed, the table on page 19 of the model will be displayed 200 and the box « Increases of temporary corrections originating in the year» in the part of the table dedicated to “Corrections for the year” must be completed. for the amount of 76,000 euros. The form will place the completed information in box box [02562] “Temporary fiscal year corrections (originating in the fiscal year)” on page 26 bis of form 200. Likewise, in the table displayed on page 19 of form 200, the part corresponding to "Outstanding balance at the end of the year" must be completed. Furthermore, as we are dealing with a positive adjustment at origin , the box for future reductions of Temporary corrections must be completed. ##3##for a value of 76,000 euros, since this positive temporary difference at origin will be reversed through negative extra-accounting adjustments and will mean future decreases in the tax base. In order to complete the box for future decreases in the row corresponding to "Balance pending corrections at the end of the year" , you must go to box [00304] on page 12 of model 200 so that the part of the table related to decreases is displayed. The form will transfer the amount to 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 | --- | --- | 76,000 | --- | --- | 76,000 |
| Fiscal year 2022 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 |
--- | --- | 76,000 | --- | --- | 76,000 |
| Temporary corrections originating in previous years |
--- | --- | ||||
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 | --- | --- | [02562] 76,000 | --- | --- | ||
| Differences between accounting amortization and tax amortization (art. 12.1 LIS) |
DECREASE | --- | --- | --- | --- | [02570] 76,000 | ||
In fiscal year 2023 , the tax correction that Company "C" will carry out to determine the tax base of the Corporate Tax (box [00303]) will be as follows:
| Accounting amortization | Tax amortization | Increase in the result of the profit and loss account |
|---|---|---|
| 200,000 x 50% = 100,000 | 200,000 x 12% = 24,000 | 76,000 |
In the WEB Companies form, in the period 2023 , this adjustment will continue to be a positive temporary correction originating in the year , therefore, of the In the same way as in 2022 , when box [00303] is to be completed, the table on page 19 of form 200 will be displayed and you must proceed to complete the box “Increases in temporary corrections originating in the year” in the part of the table dedicated to “Corrections for the year” for the amount of 76,000 euros. The form will transfer the amount to box [02562] on page 26 bis of form 200. Likewise, in the table displayed on page 19, the part corresponding to "Outstanding balance at the beginning of the year" must be completed , as we are dealing with a positive adjustment at source, the box must be completed future decreases ##2##of Temporary corrections in the amount of 76,000 euros since this is the value of the future decrease box in the Pending Balance column in order to fiscal year 2022 .
Regarding the part corresponding to « Outstanding balance at the end of the year » , as it is a positive adjustment at origin , the box for future decreases of Temporary corrections must be completed because this positive temporary difference at source will revert through negative extra-accounting adjustments and will mean future decreases in the tax base. The amount of the aforementioned box will be 152,000 euros (76,000 + 76,000), which is the accumulated balance of 2022 and 2023. The form will transfer the amount to 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 by the IS) (page 19 of model 200)
| Total | --- | 76,000 | 76,000 | --- | --- | 152,000 |
| Fiscal year 2023 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 |
--- | 76,000 | 76,000 | --- | --- | 152,000 |
| Temporary corrections originating in previous years |
--- | --- | ||||
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 | --- | --- | [02562] 76,000 | --- | --- | ||
| Differences between accounting amortization and tax amortization (art. 12.1 LIS) |
DECREASE | [02569] 76,000 | --- | --- | --- | [02570] 152,000 | ||