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Practical Manual of Companies 2023.

Deduction for reversal of temporary measures (DT 37.1 LIS)

1. Deduction amount

For tax periods beginning on or after January 1, 2015, in order to mitigate the effects of the reduction in tax rates on the limitation on the deduction of depreciation corresponding to the years 2013 and 2014, section 1 of the Transitional provision thirty-seventh of the LIS , established a new deduction on the full quota for taxpayers who pay taxes at the general corporate tax rate.

Thus, according to the provisions of the aforementioned provision, taxpayers who pay taxes at the general tax rate provided for in article 29.1 of the LIS and the limitation on depreciation established in article 7 of Law 16/2012 applies to them, of December 27, which adopts various tax measures aimed at consolidating public finances and promoting economic activity, will be entitled to a deduction in the full quota of 5 percent (2 percent for tax periods beginning in 2015) of the amounts included in the tax base of the tax period in accordance with the third paragraph of the aforementioned article, derived from the amortizations not deducted in the tax periods that have been started in 2013 and 2014.

Keep in mind:

This deduction will be applied subsequently to the other deductions and bonuses that result from the application of the Corporate Tax, so does not apply the joint limit .

Amounts not deducted due to insufficient full tax may be deducted in subsequent tax periods, without time limitation .

2. Filling in form 200

Taxpayers will enter in box box [01040] «Deduction for reversal of temporary measures DT 37.1 LIS » on page 14 bis of form 200, the amount corresponding to these deductions that apply in the tax period being declared. The amount entered in this box will be the one resulting from completing breakdown table on page 19 of form 200 explained below.

Completion of the table “Deduction for reversal of temporary measures DT 37.1 LIS” ( page 19 of form 200)

This table must record the amounts of the deduction for reversal of temporary measures generated in the years 2015 to 2023, as detailed below:

  • In column "Deduction base" the amounts corresponding to the amounts included in the tax base for the years 2015 to 2023, derived from the amortizations not deducted in the tax periods that began, will be entered. in 2013 and 2014, and to which the deduction is applied.

  • In column "Amount generated/pending at the beginning of the period" the amounts derived from applying the 2 percent percentage to the amounts in the "Deduction base" columns will be recorded (for the 2015 tax period) and 5 percent (for the 2016 to 2023 tax periods).

    The row “2023(*)” should only be completed if the entity has deductions pending to apply, corresponding to a previous tax period starting in 2023.

  • In the column "Amount applied" the amounts corresponding to the amounts entered in the previous column "Amount generated/pending at the beginning of the period" will be entered, which have been applied in the subject tax period of declaration.

    In box box [01040] the total of the amounts entered in the column "Applied in this settlement" will be collected, which must be transferred to box [01040] on page 14 bis of form 200 regarding the settlement of the Tax.

  • In the column "Pending amount" the amounts corresponding to the amounts that remain pending to be applied for future tax periods will be entered.