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Practical Handbook for Companies 2024.

Example

Entity "A" in the tax period starting from January 1, 2024, has impairment losses on securities representing participation in the capital or equity of entities generated in tax periods starting before January 1, 2013 pending reversal, in accordance with the provisions of the sixteenth transitional provision of the LIS:

Tax period 1

We assume that in the tax period starting from January 1, 2024, entity "A" has provisions pending reversal amounting to 3,000 euros and that the amount of the reversal due to the application of the DT 16.1 of the LIS is 400 euros, so you must complete the section "Reversal of impairment losses on securities representing participation in the capital or equity of entities pending reversal (DT 16 LIS)" on page 20 quarter of form 200, as follows:

  • Column "Number of tax periods": 1

  • Column "Allocations pending integration at the beginning of the period" (box [00941]): 3,000 euros

  • Block "Provisions included in this settlement":

    • Column "DT 16.1 and 2 LIS" (box [02810]): 400 euros

    • Column "DT 16.3 LIS" (box [00990]): 600 euros

      In this case, the reversal amount by applying DT 16.1 of the LIS is less (400 euros) than the minimum reversal amount established in DT 16.3 of the LIS (3,000/3 = 1,000 euros), so entity "A" will record the minimum reversal amount (600 euros) in the manner indicated in this block.

    • Column "Allocations pending integration in future periods" (box [00991]): 2,000 euros

      In this column, entity "A" will record the amount of 2,000 euros that remains pending reversal in the following two periods, after subtracting the amount of provisions pending integration at the beginning of the period (3,000 euros) from the amount integrated in the settlement (1,000 euros).

Tax period 2

Continuing with the previous example, entity "A" has provisions pending reversal at the beginning of this period for an amount of 2,000 euros and we assume that the amount of the reversal due to the application of DT 16.1 of the LIS in this period is 1,400 euros, so it must complete the aforementioned reversal section on page 20 quarter of form 200, as follows:

  • Column "Number of tax periods": 2

  • Column "Allocations pending integration at the beginning of the period" (box [00941]): 2,000 euros

  • Block "Provisions included in this settlement":

    • Column "DT 16.1 and 2 LIS" (box [02810]): 1,400 euros

    • Column "DT 16.3 LIS" (box [00990]): 0 euros

      In this case, the reversal amount by applying DT 16.1 of the LIS is higher (1,400 euros) than the minimum reversal amount established in DT 16.3 of the LIS (3,000/3 = 1,000 euros), so entity "A" will record the amount of 1,400 euros in the manner indicated in this block.

    • Column "Allocations pending integration in future periods" (box [00991]): 600 euros

      In this column, entity "A" will record the amount of 600 euros that remains to be reversed in the following period, after subtracting the amount of provisions pending integration at the beginning of the period (2,000 euros) from the amount integrated in the settlement (1,400 euros).

Tax period 3

Following the previous example, entity "A" has provisions pending reversal at the beginning of this period for an amount of 600 euros and we assume that the amount of the reversal due to the application of DT 16.1 of the LIS in this period is 0, so it must complete the aforementioned reversal section on page 20 quarter of form 200, as follows:

  • Column "Number of tax periods": 3

  • Column "Allocations pending integration at the beginning of the period" (box [00941]): 600 euros

  • Block "Provisions included in this settlement":

    • Column "DT 16.1 and 2 LIS" (box [02810]): 0 euros

    • Column "DT 16.3 LIS" (box [00990]): 600 euros

      To complete this box, entity "A" must take into account the provisions of the second paragraph of DT 16.3 of the LIS, according to which in the event of a reversal of a higher amount by application of the provisions of sections 1 or 2 of this provision, the remaining balance will be integrated equally between the remaining tax periods (in this case, only one tax period remains). Therefore, 600/1 = 600 euros.

    • Column "Allocations pending integration in future periods" (box [00991]): 0 euros

      In this column, entity "A" will record the amount of 0 euros since there are no tax periods pending integration.

According to this example, the table "Reversal of impairment losses on securities representing participation in the capital or equity of entities pending reversal (DT 16 LIS)" on page 20 quarter of form 200 would be completed as follows:

Period No.
tax		 Pending integration provisions
at the beginning of the period		 Provisions included in this liquidation Pending integration provisions
at the beginning of the period
DT 16 1 and 2 DT 16.3 LIS
1 3,000 400 600 2,000
2 2,000 1,400 0 600
3 600 0 600 0