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, it will be displayed simultaneously on the form Companies WEB the breakdown table "Detail of the corrections to the result of the profit and loss account (excluding the correction for Corporate Tax)" on page 20 bis of model 200. This information, once completed, will be grouped in the detail table contained on pages 26 bis to 26 exies of model 200.

In this case, only will be enabled for completion in the box corresponding to « Reductions in permanent corrections» in the part of the table on page 20 bis of model 200 dedicated to “Corrections of the exercise”. The column that includes the outstanding balances at the beginning and end of the year cannot be completed since this is a permanent extra-accounting adjustment, there is no outstanding balance since the adjustment cannot be reversal object in subsequent exercises.

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 the BETA Company, resident in Spain. This dividend meets all the requirements established in articles 21.1, 21.2 and 22.11 of the LIS , therefore, the exemption regulated in the aforementioned article 21 of said Law may apply. The entity's tax period coincides with the calendar year.

In this example, entity "B" has accounting income that is not tax income , because it is exempt by reason of article 21 LIS , so you must make in model 200 of the period, a negative adjustment to the accounting result in box [00370] "Exemption on dividends or participation in profits of resident entities (art. 21.1, 21.10 and DT 40 LIS)" on page 13 of form 200 for the 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	Tax correction	Form 200
2023	+10,000	0	- 10,000	Box [00370]

In the WEB Companies form, when box [00370] is to be completed, the table on page 20 bis of form 200 will be displayed. Only will be enabled for completion in the box corresponding to « Decreases in permanent corrections» in the part of the table dedicated to «Corrections for the year», which must be completed for a value 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 result of the profit and loss account (excluding the correction for IS ) (page 20 bis of model 200)

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

Detail table of the corrections to the result of the profit and loss account (excluding the correction by the IS) (page 26 bis to 26 e of model 200)

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