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Practical Manual of Companies 2022.

Levelling reserve converted into tax payable

Article 29.2 of the LIS regulates the tax rates applicable to cooperatives, establishing that tax-protected cooperative societies will be taxed on cooperative results at 20 percent and on non-cooperative results at the general rate of 25 percent. percent; and credit cooperatives and rural banks for general cooperative results of 25 percent and for non-cooperative results at 30 percent.

According to the provisions of this article 29.2 of the LIS, a tax-protected cooperative pays Corporate Tax at a tax rate different from the general one, for which cannot apply the leveling reservation (not even for extra-cooperative results).

Consequently, only cooperative societies that do not have the status of fiscally protected can choose to apply the tax benefit of the equalization reserve.

Filling in form 200

The boxes [01285] and [01286] “Equalization reserve converted into quotas (only entities of art. 101 LIS)” on page 14 of form 200, will be completed only when the reporting entity is a cooperative society that does not have the status of fiscally protected, and chooses to apply the tax incentive of the equalization reserve established in the article 105 of the LIS, as long as they meet the conditions established in article 101 of the LIS and apply the tax rate provided for in the first paragraph of article 29.1 of this Law.

Cooperatives that do not have the status of fiscally protected and choose to apply the leveling reserve , must have previously checked the box [00019] «Rest of cooperatives" and box [00006] "Incentives for small-sized entities (Chap. XI, Tit. VII LIS)» on page 1 of model 200.

In the tax periods in which these cooperative societies choose to apply the equalization reserve, must make the following adjustments in boxes [01285] and [01286] “Equalization reserve converted into quotas (only entities of article 101 LIS)” on page 14 of model 200:

  • In box [01286] of reductions, a negative adjustment will be recorded in the previous positive full quota, taking into account the limits mentioned in article 105 of the LIS.

  • Likewise, cooperative societies that have chosen to apply said tax benefit will be obliged to reverse said adjustment in box [01285] of increases in the tax periods that conclude in the five years immediately following the end of said period, as it generates a negative prior full tax and up to the amount thereof.