Education and Promotion Fund expenses
a) Cooperative results
In box [C4] the amounts of cooperative results that the cooperatives allocate, on a mandatory basis to the Education and Promotion Fund, and that are tax deductible in accordance with the provisions of articles 18.2 and 19 of Law 20/1990, will be included.
For tax purposes, the deductible amount of the allocation to the Education and Promotion Fund may not exceed in each financial year percent of the net surplus thereof. The excess will not be tax deductible .
Article 58.1 of Law 27/1999 establishes that, of the surpluses accounted for in determining the cooperative result , once losses of any kind from previous years have been deducted and before consideration of the Corporate Tax, at least 5 percent will be allocated to the Education and Promotion Fund.
Keep in mind:
The allocations to this fund from cooperative results that are not -deductible must be included as accounting expense in box [C2]. In addition, for the part that is not tax deductible, a positive adjustment must be made to the accounting result (box [C6]), the amount of which must be included in box [C7].
b) Extra-cooperative results
In box [E4] the amounts of the extra-cooperative results that are allocated by the cooperatives to the Education and Promotion Fund will be recorded. These amounts are not tax deductible.
Keep in mind:
The provisions to this fund charged to non-cooperative results, are not tax deductible , so a positive adjustment must be made to the accounting result (box [E6]) whose amount must be included in box [E7].