Negative permanent adjustments

In the event that the taxpayer has to make a correction to the result of the Profit and Loss Account that entails a permanent negative correction to the accounting result, when completing the corresponding box on pages 12 and 13, the breakdown table "Details of corrections to the result of the profit and loss account (excluding the correction for Corporate Tax)" on page 20 bis of form 200 will be displayed simultaneously in the Sociedades WEB form. This information, once completed, will be grouped in the detail table contained on pages 26 bis to 26 sexies of form 200.

In this case, the box corresponding to " Permanent correction decreases" in the section of the table on page 20 bis of form 200 dedicated to "Corrections for the fiscal year" will be enabled for completion. The column that contains the outstanding balances at the beginning and end of the year cannot be completed since, as it is a permanent extra-accounting adjustment, there is no outstanding balance as the adjustment cannot be reversed in subsequent years.

Example:

Entity "B", whose net turnover in the immediately preceding tax period is less than 40 million euros, receives dividends amounting to 10,000 euros from Company BETA, resident in Spain. This dividend meets all the requirements established in articles 21.1, 21.2 and 22.11 of the LIS , therefore, it may apply the exemption regulated in the aforementioned article 21 of said Law. The entity's tax period coincides with the calendar year.

In this example, entity "B" has an accounting income that is not tax income , because it is exempt by reason of article 21 LIS , so it must make in form 200 for the period, a negative adjustment to the accounting result in box [00370] "Exemption on dividends or shares in profits of resident entities (art. 21.1, 21.10 and DT 40 LIS)" on page 13 of form 200 for an amount of 10,000 euros. This is a permanent correction because according to the LIS this income will not have to be included in the tax base in future years.

Financial year	Accountingly	Fiscally	Fiscal correction	Form 200
2023	+ 10,000	0	- 10,000	Box [00370]

In the WEB Companies form, when box [00370] is filled in, the box on page 20 bis of form 200 will be displayed. the box corresponding to " Permanent correction decreases" in the section of the table dedicated to "Corrections for the financial year" will be enabled for completion, which must be completed for an amount of 10,000 euros. The form will transfer the amount completed here to box [02966] on page 26 quater of form 200.

Detail of the corrections to the profit and loss account result (excluding the correction for the IS ) (page 20 bis of form 200)

Exercise 2023 tax corrections	Outstanding balance at beginning of fiscal year		Exercise corrections		Outstanding balance end of fiscal year
Total	---	---	---	10,000	---	---
Exercise 2023 tax corrections	Future increases	Future decreases	Increases	Decreases	Future increases	Future decreases
Permanent corrections	---	---	---	10,000	---	---
Temporary corrections with origin in the fiscal year	---	---	---	---	---	---
Temporary corrections with origin in previous years	---	---	---	---	---	---

Table of details of corrections to the profit and loss account result (excluding the correction for IS) (page 26 bis to 26 sexies of form 200)

Detail of settings	Type	Outstanding balance at the beginning of the fiscal year		Exercise corrections			Outstanding balance at the end of the fiscal year
Detail of settings	Type	Outstanding balance at the beginning of the fiscal year		Permanent	Temporary (originating in the fiscal year)	Temporary (origin in previous exercises )	Outstanding balance at the end of the fiscal year
Exemption on dividends or shares in profits of resident entities (art. 21.1, 21.10 and DT 40 LIS)	DECREASE	---		[02966] 10,000	---	---	---