Practical examples

Example 1:

Company "M" is a small entity that pays taxes under the special regime applicable to such entities provided for in articles 101 to 105 of the LIS , whose tax period coincides with the calendar year.

In fiscal year 2021 said company was required to set aside a reserve of 100,000 euros and only set aside the amount of 50,000 euros in said fiscal year.

In the Corporate Tax return for fiscal year 2021 , company "M" should have completed the "Reserve allocation" section of the "Leveling reserve" table on page 20 bis of form 200 as follows:

Subsequently, in fiscal year 2022 , company "M" provides an additional reserve of 25,000 euros corresponding to the amount of the reserve that it was obliged to provide in fiscal year 2021 .

In the Corporate Tax return for fiscal year 2022 , company "M" must complete the "Reserve allocation" section of the "Leveling reserve" table on page 20 bis of form 200 as follows:

As can be seen in this example, the amount of 100,000 euros to be entered in the column "Reserve amount to be allocated" does not vary in the different corporate tax returns as long as the obligation to allocate the equalisation reserve persists.

Example 2:

Company "A" is a small entity that pays taxes under the special regime applicable to such entities provided for in articles 101 to 105 of the LIS, whose tax period coincides with the calendar year.

Exercise 2021 :

Calculation of capitalization and equalization reserves for fiscal year 2021

1. First, company "A" calculates the capitalization reserve in accordance with article 25 of the LIS:

   Total:	300.300	Total:	330.300
   FP for the purposes of article 25 as of 01/01/ 2021		FP for the purposes of article 25 as of 31/12/2021
   Social capital	300,000	Social capital	300,000
   Voluntary reserves	300	Voluntary reserves	30,300

   According to the above data, the increase in equity (Δ FP) is 30,000

   Therefore, the capitalisation reserve for the year, as established in article 25 of the LIS, will be 10% of the increase in the company's equity, with a limit of 10% of the positive tax base of the tax period prior to this reduction, the integration referred to in section 12 of article 11 of this Law and the compensation of negative tax bases.

   • Capitalization reserve = 10% reduction of Δ FP = 3,000
   • Limit 10% BI prior to capitalization reserve = 10% 250,000 = 25,000
   • Pending capitalization reserve to be applied = 0

   The requirements for maintaining the increase in equity must be met. A capitalisation reserve of 3,000 must also be provided.

2. As for the leveling reserve for fiscal year 2021 as established in article 105 of the LIS, it may be reduced by up to 10% of the positive tax base, with a limit of 1 million euros:

   • Leveling reserve = 10% of positive BI = 10% 247,000 = 24,700
   • Limit = 1,000,000

   The amount of 24,700 will be added to the tax base of the tax periods ending in the 5 years immediately following the end of tax period 2021 , provided that company A has a negative tax base, and up to the amount thereof. The remaining amount will be added to the tax base of the tax period corresponding to the date of completion of the aforementioned period.

   A leveling reserve of 24,700 must be provided in 2021

   The settlement of the Corporate Tax corresponding to the fiscal year 2021 is as follows:

   IS Settlement 2021
   Accounting result before taxes 2021	250,000
   Differences	0
   BI prior to the reduction of art. 25 and the compensation of negative BI	250,000
   Capitalization reserve (limit 10% x 250,000 = 25,000)	-3.000
   Compensation of negative tax bases from previous periods	0
   Taxable base	247,000
   Leveling Pool (Limit 1,000,000)	-24.700
   BI after leveling reservation	222.300
   Tax rate	25%
   Total tax liability	55.575
   Tax deductions and bonuses	0
   Net share	55.575
   Withholdings and prepayments	-5.000
   Due tax	50.575

Exercise 2022 :

Calculation of capitalization and equalization reserves for fiscal year 2022

1. First, company "A" calculates the capitalization reserve in accordance with article 25 of the LIS:

   Total:	330.300	Total:	363,300
   FP for the purposes of article 25 as of 01/01/ 2022		FP for the purposes of article 25 as of 31/12/ 2022
   Social capital	300,000	Social capital	300,000
   Voluntary reserves	30,300	Voluntary reserves	60,300
   ---	---	Capitalization reserve	3,000

   According to the above data, the increase in equity (Δ FP) is 33,000.

   Therefore, the capitalisation reserve for the financial year, as established in article 25 of the LIS, will be 10% of the increase in the company's equity, with a limit of 10% of the positive tax base of the tax period prior to this reduction, the integration referred to in section 12 of article 11 of this Law and the compensation of negative tax bases.

   • Capitalization reserve = 10% reduction of Δ FP = 3,300
   • Limit 10% BI prior to capitalization reserve = 0
   • Capitalization reserve pending application during the next two years = 3,300

2. Regarding the leveling reserve for fiscal year 2022 , given that the taxable base for the period is -20,000, the amounts reduced by the leveling reserve for 2021 must be added up to said amount.

   • Leveling Reserve Addition 2021 = 20,000
   • Leveling reserve pending addition = 24,700 - 20,000 = 4,700

   The settlement of the Corporate Tax corresponding to the year 2022 is as follows

   IS Settlement 2022
   Accounting result before taxes 2022	-20,000
   Differences	0
   BI prior to the reduction of art. 25 and the compensation of negative BI	-20,000
   Capitalization reserve (limit 0)	0
   Compensation of negative tax bases from previous periods	0
   Taxable base	-20,000
   Leveling reserve (negative BI limit: -20,000)	20,000
   BI after leveling reservation	0
   Tax rate	25%
   Total tax liability	0
   Tax deductions and bonuses	0
   Net share	0
   Withholdings and prepayments	-5.000
   Due tax	-5.000

Completion of the capitalization and equalization reserve tables in model 200 for fiscal years 2021 and 2022

• Corporate Income Tax Return 2021

• Corporate Income Tax Return 2022