Impairment losses on securities representing shares in capital or equity

1. Assumption of article 13.2 b) of the LIS

This article establishes that ## losses due to impairment of securities representing participation in the capital or equity of entities will not be deductible when, in the tax period in which the impairment is recorded, any of the following circumstances occur:

• The requirement established in article 21.1 a) of the LIS is not met. This requirement consists of the percentage of participation, direct or indirect, in the capital or in the entity's own funds being at least 5 percent. With effect for the tax periods beginning on or after 1 January 2021, the alternative requirement that the acquisition value of the participation be greater than 20 million euros is eliminated, although in the fortieth transitional provision of the LIS a transitional regime is added to be applied for a period of 5 years to participations acquired in tax periods beginning before 1 January 2021, which had an acquisition value greater than 20 million euros, without reaching the 5 percent percentage established in article 21.1 a) of the LIS. In addition, it is required that the participation must be held uninterruptedly for at least 1 year, and

• That in the case of participation in the capital or equity of entities not resident in Spanish territory, in said tax period the requirement established in article 21.1 b) of the LIS is also met, that is, that the entity has been subject to and not exempt from a foreign tax of an identical or analogous nature to this Tax at a nominal rate of at least 10 percent.

Filling in form 200

In application of the provisions of article 13.2 b) of the LIS, the taxpayer must make the following adjustments in boxes [ ] and [00326] "Adjustments for impairment losses on securities representing participation in capital or equity (art. 13.2 b) LIS)" on page 12 of form 200:

• In box [00325] of increases, the taxpayer must record the amount of losses due to impairment of securities representing participation in the capital or equity of entities accounted for in the tax period subject to declaration, which are not deductible by application of article 13.2 b) of the LIS.

• However, in accordance with the provisions of article 20 of the LIS , these impairment losses will be deductible in the tax period in which the participation is transferred or deregistered, provided that the indicated requirements are met during the year prior to the transfer or deregistration of the participation.

  In these cases, the taxpayer in the tax period after the accounting of the aforementioned impairment losses that gave rise to a positive adjustment to the accounting result (box [00325]) because they are not tax deductible, must include in [00326] of decreases, the amount corresponding to said impairment as a result of its reversal.

2. Assumption of article 15 k) of the LIS

This article establishes that ## losses due to impairment of securities representing participation in the capital or equity of entities will not be deductible when, in the tax period in which the impairment is recorded, any of the following circumstances apply:

• The requirements established in article 21 of the LIS are met, or

• That in the case of participation in the capital or equity of entities not resident in Spanish territory, in said tax period the requirement established in article 21.1 b) of the LIS is not met.

Filling in form 200

In application of the provisions of this precept, the taxpayer must include in box [01807] "Losses due to impairment of securities representing participation in capital or equity (art. 15 k) LIS" on page 12 of form 200, the amount of losses due to impairment of securities representing participation in the capital or equity of entities accounted for in the tax period subject to declaration, which are not deductible by application of article 15 k) of the LIS.