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Practical Manual of Companies 2023.

Payment for converting deferred tax assets into credit payable to the Tax Agency

Regulation: Article 130 LIS

Deferred tax assets corresponding to provisions for impairment of credits or other assets derived from possible insolvencies of debtors not linked to the taxpayer, not owed to public law entities and whose deductibility does not occur by application of the provisions of the article 13.1.a) of this Law, as well as those derived from the application of sections 1 and 2 of article 14 of this Law, corresponding to endowments or contributions to social security systems and, where appropriate, early retirement, may be converted into a claim payable to the Tax Administration, for an amount equal to the positive net amount corresponding to the tax period in which they were generated.

However, when the amount of the positive net amount of a given tax period is higher than the amount of the deferred tax assets generated in the same referred to in the previous paragraph, the entity may have the right provided for in this article, for an amount equal to the excess, with respect to those assets of the same nature generated in previous tax periods or in the 2 subsequent tax periods.

For the conversion mentioned above to occur, any of the following circumstances must occur:

  1. That the taxpayer records accounting losses in its annual accounts, audited and approved by the corresponding body.

  2. That the entity is subject to liquidation or judicially declared insolvency.

The conversion of the deferred tax assets into a claim payable to the Tax Administration will occur at the time of presentation of the self-assessment of the Corporate Tax corresponding to the tax period in which the circumstances that give rise to said conversion have occurred.

Entities that convert the deferred tax assets referred to in the previous paragraph into a claim payable to the Tax Administration may choose to request their payment to the Tax Administration following the procedure established in article 69 of RIS .

Filling in form 200

If the entity chooses to request payment of the credit payable to the Tax Administration, it must enter said amount in box [00150] "Credit for conversion of deferred tax assets into credit payable against to the Tax Administration (art. 130 LIS)» on page 14 bis of model 200:

  • In the event that the entity pays taxes exclusively to the State Administration , it must enter the amount in box [01020] «Credit for conversion of deferred tax assets in credit enforceable against the Tax Administration (art. 130 LIS) (State)». In this case, the amount in box [01020] will match that in box [00150].

  • In the event that the entity pays taxes to one or more Provincial Councils of the Autonomous Community of the Basque Country and/or Navarra Foral Community, it must enter the amount in box [01043] «Credit for conversion of deferred tax assets into credit payable to the Tax Administration (art. 130 LIS) (D. Forales/Navarra). This box will be completed on page 26 of form 200.