Practical example of deductions

Company "A" which has a net turnover of less than 20 million euros and is not taxed under the tax consolidation regime and whose financial year lasts twelve months and coincides with the calendar year, has the following information when submitting your Corporate Tax return for the year 2022 :

1. The full quota, less deductions for double taxation and bonuses (box [00582] "Positive adjusted full quota" on page 14 of form 200), is 100,000 euros.

2. The following deductions from previous periods are pending application:

   • Fiscal year 2015 : By investment of benefits: 20,000 euros.

   • Fiscal year 2016 : For research and development expenses: 2,000 euros.

   • Fiscal year 2017 : For donations to UNICEF : 1,000 euros.

   • Fiscal year 2018 : For job creation for workers with disabilities: 3,300 euros.

   • Fiscal year 2019 : For their participation in the VII Centenary of the Archive of the Crown of Aragon: 1,800 euros.

   • Fiscal year 2020 : For expenses on technological innovation: 2,500 euros.

3. During the year 2022 , it has made investments in the Canary Islands for the acquisition of material fixed assets that, in accordance with the provisions of Law 20/1991, give the right to a deduction in the amount of 2,000 euros .

4. The amount of the deduction for research and development activities corresponding to expenses and investments made in the year 2022 amounts to 21,000 euros (exceeds 10 percent of the full quota of 2022 reduced in deductions to avoid double taxation and bonuses). In fiscal year 2022 , it does not make investments in technological innovation.

Solution:

Positive adjusted full rate (box [00582]): 100,000 euros

Application of deductions:

• For investment of profits 2015 (pending balance): 20,000

  Applies: 20,000

• For research and development expenses 2016 (pending balance): 2,000

  Applies ⁽¹⁾: 2,000

• For donations to UNICEF 2017 (pending balance): 1,000

  Applies: 1,000

• For job creation for workers with disabilities 2018 (pending balance): 3,300

  Applies ⁽¹⁾: 3,300

• For their participation in the VII Centenary of the Archive of the Crown of Aragon 2019 (pending balance): 1,800

  Applies ⁽¹⁾: 1,800

• For expenses on technological innovation 2020 (pending balance): 2,500

  Applies ⁽¹⁾: 2,500

• For investments in the Canary Islands made andn 2022: 2,000

  Applies ⁽²⁾: 2,000

• For research and development expenses 2022 : 21,000

  Applies ^{(1) (3)}: 19,400

Liquid quota calculation :

Full amount, reduced by deductions for double taxation and bonuses = 100,000 euros

(-) Deductions applied = 52,000 euros

Liquid fee (box [00592]) = 48,000 euros

Notes to the example:

⁽¹⁾ The joint limit of deductions in Chapter IV of Title VI of the LIS amounts to 50,000 euros. In accordance with the provisions of article 39 of the LIS it is raised from 25 to 50 percent of the full positive adjusted quota, exceeding the amount of the deduction for research and development activities. and technological innovation of 10 percent of said amount. ^{(return research 2015) (return creation) (return participation) (return innovation) (return research 2020)}

⁽²⁾ The applicable limit according to Law 20/1991 amounts to 50 percent of the full positive adjusted quota (50,000 euros). ^(Back)

⁽³⁾ This deduction cannot be applied in its entirety because it exceeds the aforementioned joint limit. ^(Back)

Completion of the Tax return for fiscal year 2022 (tables pages 16 bis, 17, 18 and 18 bis of model 200)

Investment deductions in the Canary Islands with increased limits

Total	[00886]	2,000	[00590]	2,000	[00887]	0
Deductions	Pending deduction generated		Applied in this settlement		Pending application in future years
2022 : Investments in the Canary Islands (Law 20/1991)	[00767]	2,000	[00768]	2,000	[00769]	0

Deductions to encourage certain activities
( Chap. IV Title VI, DT 24.3 LIS and art. 27.3 first Law 49/2002)

Total	[00831]	51,600	[00588]	50,000	[00832]	1,600
Deductions	Pending deduction generated		Applied in this settlement		Pending application in future years
2015 : Add deductions Ch. IV Title VI Law 43/95, RDLeg. 4/2004 and LIS (except R&D&i)	[00813]	20,000	[00814]	20,000	[00815]	0
2016 : Research and development (CT)	[01617]	2,000	[01618]	2,000	[01619]	0
2017 : Add deductions Ch. IV Title VI Law 43/95, RDLeg. 4/2004 and LIS (except R&D&i)	[01847]	1,000	[01848]	1,000	[01849]	0
2018 : Add deductions Ch. IV Title VI Law 43/95, RDLeg. 4/2004 and LIS	[02218]	3,300	[02219]	3,300	[02220]	0
2019 : Add deductions Ch. IV Title VI Law 43/95, RDLeg. 4/2004 and LIS (except R&D&i)	[02353]	1,800	[02354]	1,800	[02355]	0
2020 : Technological innovation (IT)	[00234]	2,500	[00235]	2,500	[00236]	0
2022 : Research and development (CT)	[00798]	21,000	[00799]	19,400	[00800]	1,600