Corporation Tax adjustments

The need to apply this correction in boxes [00301] and [00302] "Corrections for Corporate Tax" on page 12 of form 200 is imposed by the different consideration that accounting and tax regulations have on Corporate Tax rates. Thus, the accounting standard considers that the amount of the Corporate Tax quota will be computed in the profit and loss account as an expense or income item, depending on whether the account or set of accounts representing said concept has a debit or credit balance, respectively.

However, article 15.b) of the LIS establishes that expenses derived from the accounting of the Corporate Tax are not tax deductible and that expenses derived from said accounting are not considered income.

Filling in form 200

• In box [00326] on page 8 "Profit and loss account" of said model, it refers to "Taxes on profits", so in addition to Corporate Tax, it may include taxes on profits obtained abroad, such as those that tax income obtained abroad through a permanent establishment, those that tax income obtained abroad without a permanent establishment, or taxes that particularly tax dividends or shares in profits of foreign companies.

  Likewise, the SOCIMI will include in this box the amounts resulting from applying the following special taxes on profits considered to be corporate tax:

  • 19 percent on the full amount of dividends or shares in profits distributed to partners when the participation in the share capital of the entity is equal to or greater than 5 percent and said dividends at the headquarters of its partners are exempt or taxed at a rate lower than 10 percent. The amount of this tax must be self-assessed and entered in form 217.

  • 15 percent on the amount of profits obtained in the fiscal year that are not subject to distribution , in the part that comes from income that has not been taxed at the general rate of corporate tax and is not income subject to the 3-year reinvestment period regulated in letter b) of article 6.1 of Law 11/2009. The amount of this tax must be self-assessed and entered in form 237.

• The amount entered in box [00328] "Result of the year from discontinued operations net of taxes" will correspond to a portion of the Corporate Tax quota not included in the aforementioned box [00326] .

Therefore:

• From the amount entered in box [00326] and considering the positive or negative sign attributable to it, the taxes on profits obtained abroad (with their sign) and, where applicable, the amounts of the special taxes applied by the SOCIMIs (with their sign) must be algebraically subtracted. At the same time, the portion of the Corporate Tax (with its sign) corresponding to the result of the year from discontinued operations net of taxes will be added algebraically to said amount (with its sign).

• If after carrying out the aforementioned algebraic addition and subtraction operations on the aforementioned amount in box [00326] , the resulting amount is:

  • Positive , the Corporate Tax rate that this resulting amount represents will have been considered as additional income as it is a credit in favor of the taxpayer. In this way, in box [00302] on page 12 of the model settlement, this amount must be included as a decrease in the result of the profit and loss account.

  • Negative , the Corporate Tax rate that it represents will have been considered as an accounting expense. In this way, in box [00301] on page 12 of the model settlement, this amount must be included as an increase to the result of the profit and loss account.

    In any case, the aforementioned algebraic operations carried out on the amount entered in box [00326] must only be carried out for the purpose of correcting boxes [00301] and [00302].