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Practical Manual for Companies 2024.

Application of the limit of article 11.12 of the LIS to the impairment losses of article 13.1 LIS and provisions and expenditure of articles 14.1 and 14.2 of the LIS

Regulation: DA 7 Law 20/1990 and DA 15 LIS

In the case of cooperative societies, the Seventh Additional Provision of Law 20/1990 establishes that the limit of the 70 percent to which article 11.12 of the LIS refers in the integration of the provisions included in said provision, will refer to the positive full share without taking into account their integration or the compensation of negative quotas.

However, the eighth Additional Provision of Law 20/1990 establishes that cooperative societies whose net turnover is at least 20 million euros during the 12 months prior to the date of the beginning of the tax period, will replace he limit of 70 percent of article 11.12 of the LIS for the following:

  • Cooperative societies the 50 percent, when in the aforementioned 12 months the net amount of the turnover is at least 20 million euros, but less than 60 million euros.

  • Cooperative societies the 25 percent, when in the aforementioned 12 months the net amount of the turnover is at least 60 million euros.

Filling in form 200

In application of the provisions of the first paragraph of article 11.12 of the LIS, in the tax period in which these provisions are tax deductible , in addition to recording their amount in box [00480] "Impairment losses under art. 13.1 LIS and provisions and expenses (arts. 14.1 and 14.2 LIS) referred to in art. 11.12 LIS (converted into a share)" on page 14 of form 200, cooperative societies must make the following adjustments in boxes [00408] and [01037] "Application of the limit of art. 11.12 LIS to impairment losses under art. 13.1 LIS and provisions and expenses (art. 14.1 and 14.2 LIS)» on page 14 of form 200:

  • In box [00408] you must enter the amount of those provisions whose deductibility is not applicable in said period because they exceed the limit provided for in said article. That is, box [00408] must contain the difference between the amount entered in box [00480] and the amount corresponding to the limit provided for in the first paragraph of article 11.12 of the LIS.

  • Regarding the provisions that have not been integrated into the tax base in the tax period in which they were deductible for exceeding the limit established in the first paragraph of article 11.12 of the LIS, they must be integrated in the following immediate tax periods in box [01037], also taking into account the same limit. For this purpose, the second paragraph of article 11.12 of the LIS establishes that the provisions corresponding to the oldest tax periods will be integrated first.