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Practical Manual for Companies 2023.

Deduction for reversal of temporary measures (DT 37.2 LIS)

1. Amount of deduction

For tax periods beginning on or after January 1, 2015, in order to mitigate the effects of the reduction in tax rates in the 2012 financial year balance sheet update, section 2 of the thirty-seventh transitional provision of the LIS established a new deduction on the full amount 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 who have benefited from the balance sheet update provided for in article 9 of Law 16/2012, of December 27, by which various tax measures aimed at consolidating public finances and boosting economic activity, will be entitled to a deduction in the full amount of 5 percent (2 percent for tax periods beginning in 2015) of the amounts that they include in the tax base of the tax period derived from the amortization corresponding to the net increase in value resulting from that update.

Keep in mind:

This deduction will be applied after the other deductions and bonuses that are applicable from the Corporate Tax, so the joint limit does not apply to them.

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

2. Filling in form 200

Taxpayers will enter in box [01041] "Deduction for reversal of temporary measures DT 37.2 LIS " on page 14 bis of form 200, the amount corresponding to these deductions that apply in the tax period subject to declaration. The amount entered in this box will be the result of completing the breakdown table on page 19 of form 200 explained below.

Completing the table "Deduction for reversal of temporary measures DT 37.2 LIS" ( page 19 of form 200)

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

  • In column "Deduction base" the amounts corresponding to the sums that are included in the tax base for the years 2015 to 2023 derived from the amortization of the net increase in value resulting from the balance sheet update provided for in article 9 of Law 16/2012, of December 27, will be recorded.

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

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

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

    In box [01041] the total amounts entered in the column "Applied in this settlement" will be recorded, which must be transferred to box [01041] on page 14 bis of form 200 regarding the settlement of the Tax.

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