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Practical Manual for Companies 2024.

Exceptions to limiting the offsetting of negative tax bases

The limitation on the compensation of tax bases to which we have referred in the previous section, will not apply in the following cases:

  • In any case, negative tax bases may be offset the tax period up to the amount of 1 million euros .

    In the event that the tax period has a duration of less than year the negative tax bases that may be subject to compensation in the tax period, as established in the previous paragraph, will be the result of multiplying 1 million euros by the proportion existing between the duration of the tax period with respect to the year.

  • The limitation on the compensation of negative tax bases will not apply to the amount of income corresponding to reductions or waiting periods as a result of an agreement with creditors not related to the taxpayer .

    Keep in mind:

    Negative tax bases that are subject to offset against said income will not be taken into consideration with respect to the amount of 1 million euros referred to above.

  • This limitation will not apply in the tax period in which the extinction of the entity, unless it is a consequence of a restructuring operation to which the special tax regime established in Chapter VII of Title VII of the LIS.

    Keep in mind:

    Entities that do not apply the limit established for the compensation of negative tax bases as provided in the previous paragraph, must mark box [00072] "Extinction of the entity" on page 1 of form 200 in the tax period subject to declaration in which its extinction occurs.

  • In the case of newly created entities referred to in article 29.1 of the LIS , the limitation on the offsetting of tax bases will not apply in the first 3 tax periods in which a positive tax base is generated prior to its offsetting.

    Keep in mind:

    These newly created entities that do not apply the limit established for the compensation of negative tax bases as provided in the previous paragraph, must mark the box [00070] "Compensation of negative tax bases for newly created entities (art. 26.3 LIS)" on page 1 of form 200.

  • The limits on the compensation of negative tax bases established in section 1 of the fifteenth Additional Provision of the LIS for large companies based on the net amount of the turnover, will not apply in the amount of the income corresponding to the reversal of impairment losses of representative values from participation in the capital or equity of entities that are included in the tax base by application of the provisions of the third section of the sixteenth transitional provision of the LIS, provided that the negative tax bases subject to compensation originate in tax periods beginning before January 1, 2021. That is, the amount of the positive tax base corresponding to the income from the reversal of impairment losses in third parties may be compensated with negative tax bases generated in tax periods beginning before January 1, 2021, up to a limit of 70 percent.

  • Finally, this limitation will not apply to the amount of income corresponding to the reversal of impairment losses to be integrated in the tax base by application of the provisions of the sixteenth transitional provision of the LIS,provided that the impairment losses deducted during the tax period in which the negative tax bases to be offset were generated would have represented at least the 90 percent of the deductible expenses of said period.

    In the event that the entity had negative tax bases generated in several periods beginning before January 1, 2013 , this requirement may be met by the aggregate calculation of all deductible expenses of said tax periods.