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Practical Manual of Companies 2022.

Deduction for reversal of temporary measures (DT 37.2 LIS)

1. Deduction amount

For tax periods beginning on or after January 1, 2015, in order to mitigate the effects of the reduction in tax rates in the update of balance sheets for fiscal year 2012, section 2 of the thirty-seventh transitional provision of the LIS established a new deduction on the full amount for taxpayers who pay taxes at the general corporate tax rate.

Thus, according to the provisions of the aforementioned provision, taxpayers who pay taxes at the general tax rate provided for in article 29.1 of the LIS who have taken advantage of the balance sheet update provided for in article 9 of Law 16/2012, of 27 of December, by which various tax measures are adopted aimed at consolidating public finances and promoting economic activity, will be entitled to a deduction in the full quota of 5 percent (2 percent for tax periods beginning in 2015) of the amounts included in the tax base of the tax period derived from the amortization corresponding to the net increase in value resulting from that update.

Keep in mind:

This deduction will be applied subsequently to the other deductions and bonuses that result from the application of the Corporate Tax, so the joint limit does not apply to them.

Amounts not deducted due to insufficient full tax may be deducted in subsequent tax periods, without time limitation .

2. Filling in form 200

Taxpayers will enter in box box [01041] «Deduction for reversal of temporary measures DT 37.2 LIS » on page 14 of form 200, the amount corresponding to these deductions that apply in the tax period being declared. The amount entered in this box will be the one resulting from completing breakdown table on page 19 of form 200 explained below.

Completion of the table “Deduction for reversal of temporary measures DT 37.2 LIS” ( page 19 of form 200)

This table must record the amounts of the deduction for reversal of temporary measures generated in the years 2015 to 2022 , as detailed below:

  • In column "Deduction base" the amounts corresponding to the amounts that are included in the tax base for the years 2015 to 2022 derived of the amortization of the net increase in value resulting from the update of balance sheets provided for in article 9 of Law 16/2012, of December 27.

    The row « 2022 (*)» should only be completed if the entity has deductions pending to apply, corresponding to a previous tax period starting in 2022 .

  • In the column "Amount generated/pending at the beginning of the period" the amounts derived from applying the percentage of 2 percent to the amounts in the "Deduction base" column will be recorded (for 2015 tax period) and 5 percent (for tax periods 2016 through 2022 ).

  • In the column "Amount applied" the amounts corresponding to the amounts entered in the previous column "Amount generated/pending at the beginning of the period" will be entered, which have been applied in the subject tax period of declaration.

    In box box [01041] the total of the amounts entered in the column "Applied in this settlement" will be collected, which must be transferred to box [01041] on page 14 of the reference form 200 to the settlement of the Tax.

  • In the column "Pending amount" the amounts corresponding to the amounts that remain pending to be applied for future tax periods will be entered.