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New features in the operation of the form 220 declaration form.Financial year 2021.Calculation help

1.Proportional distribution of tax credits generated within the group and applied in the tax return for the year.

In order to facilitate the correct distribution of the capitalisation and equalisation reserves, as well as of the tax losses and deductions generated by the group and applied in the tax return, between the different entities making up the group, in the proportion in which they have contributed to their formation, the way in which the data is entered in the programme has been modified.

For this purpose, initially, the amounts to be applied at the beginning of the period or generated in the period corresponding to the group will be filled in by the program by adding up all the correlative items of the pages corresponding to the entities of the group, i.e. the amounts will be entered in the TIN pages and the engine will calculate the corresponding amounts of the group page.

Once the amounts pending at the beginning have been completed in accordance with the provisions of the previous paragraph, the amounts applied in the return by the group are completed on the page corresponding to the group, i.e. at the aggregate level, with the programme distributing them among the different entities of the group in the proportion in which they have contributed to their formation, and transferring them to the NIF pages.

For example, in the case of the application of the negative tax bases of the group (pages 7K, 7K bis and 7K NIF), the column that includes the balances pending application at the beginning of the period or generated in the period on page 7K, will be completed by the sum of all the correlative boxes of the pages 7K NIF, i.e. box [00109] of page 7K will be calculated by the program by the sum of the boxes [05205] of all the pages 7K NIF where the corresponding data has been entered, and so on and so forth.The amounts applied by the group shall be entered directly on the page corresponding to the group, i.e. page 7K, and the programme shall distribute them among the different entities, on the 7K NIF pages, in proportion to how they have contributed to their formation.

The pages affected by this new way of entering data are the following:

  • Pages 7I and 7I FRS, except for the amounts included in the settlement due to non-compliance with requirements in the table "Allowance to be added" and the items "Reserve to be allocated" and "Impairment charges for loans and other assets arising from the possible insolvencies of debtors...", which must be completed on pages 7I FRS and transferred by the programme to page 7I.

  • Pages 7K and 7K NIF

  • Pages 12 A and 12 A TIN

  • Pages 13 A, 13 Aa, 13 A NIF and 13 A NIFa.

  • Pages 14A, 14Aa, 14Ab, 14Ab, 14Ac, 14A TIN, 14A TINA, 14A TINAb, 14A TINb and 14A TINc.

It should be borne in mind that, in accordance with the LIS, it must be understood that the application of a tax credit by the group must be carried out in proportion to the contribution of the constituent entities at source, this rule being the one covered by the regulations and the one applied in the calculation aid of the programme.

However, if it is desired to modify the apportionment under the LIS and proposed by the programme, i.e. the proportional apportionment of these tax credits in the proportion in which they have contributed to their formation, a section has been provided on page 1 of the Model so that the calculation aid provided by the programme does not apply.

Thus, with the "Inoperability of the calculation aid" check, it will be possible to modify the amounts automatically calculated by the programme relating to the proportional application of the tax credits generated within the group between the entities making up the group.Please note that the calculation aids will not function correctly if you decide to change these amounts.

2.Determination of the limit for the application of pre-consolidated tax credits.Calculation aids.

The application of the tax credits pending application by an entity that joins a consolidated tax group is subject to an additional limit calculated on the liquidation of the entity itself, i.e., that which would have corresponded to it under the individual taxation regime, taking into account the eliminations and incorporations that correspond to said entity, in accordance with the provisions of articles 64 and 65 of this Law.For its determination, the taxable base and the gross tax liability of the entity that has generated the credits must be calculated.

To this end, a series of calculation help fields have been introduced in the pages that include the offsetting of tax losses and deductions, which quantify the amounts that can be applied, in accordance with the limits established by the applicable regulations, highlighting the amounts that exceed these limits.

For the purposes of this limit, the entity shall determine the taxable income and the individual gross tax payable for the tax period, taking into account any eliminations and additions in accordance with Articles 64 and 65 of the LIS.

In particular, both the tax losses and deductions generated within the group, to the extent that the entity has contributed to their formation, and those pending application prior to its incorporation, must be taken into account.

However, as it is a calculation aid tool, the warnings generated on the basis of it will not prevent the filing of the self-assessment.

3.System for shipping companies according to tonnage

Another new feature of the aid programme for 2021 is to ensure, to a greater extent, compliance with the compensation limit established by the regulations for the tax base determined under the objective assessment scheme for entities covered by the tonnage-based shipping entities scheme.

The content of code 00049 will only include the amount of the taxable base determined in accordance with the provisions of Article 114.1 of the LIS, by applying the scale contained in that section to the net registered tonnage of each of the vessels covered by the scheme.In accordance with the provisions of paragraph 3 of the said Article, the part of the tax base determined in this way may not be offset against tax losses arising from the rest of the shipping company's activities, either in the current or previous years, or against tax losses pending offset at the time of application of this system.Finally, according to Article 115(2), the part of the gross tax liability attributable to the part of the tax base determined in accordance with the provisions of Article 114(1) of this Law may not be reduced by the application of any type of deduction or relief.Therefore, in order to determine the amount of code 00225, group's preliminary taxable base to be corrected by the corrections for deferral of internal results and other corrections to the sum of taxable bases, excludes the taxable base determined under the objective assessment regime of the tonnage-based regime for shipping entities.That is to say:00225 = 00043 + 00079 + 00086.

Code 00550, bgroup taxable income, prior to the application of the capitalisation reserve and the offsetting of tax losses from previous periods, will incorporate the amount of code 00049, btaxable income determined under the objective assessment system for shipping entities, as well as the increases and decreases corresponding to impairment losses on credits and contributions to social welfare systems under articles 13.1, 14.1 and 14.2 referred to in article 11.12 and DT 33 LIS, as well as 67 d) and 74.3 d) LIS.In other words:00550 = 00225 + 00049 + 02542 - 02543 + 02544 - 00291 - 00398

4.Exit tax.Article 19.1 Law 27/2014

In accordance with the provisions of Article 19.1 of the LIS, an entity resident in Spanish territory that transfers its residence outside of Spain, in the case of assets transferred to a Member State of the European Union or of the European Economic Area that has entered into an agreement with Spain or with the European Union on mutual assistance in the recovery of tax credits, the taxpayer may opt to split the payment of the tax debt resulting from the inclusion in the tax base of the difference between the market value and the tax value of the assets owned by said entity, in equal fifths of the year.

In order to include this option in the tax return form, a section entitled "Option of instalments in the event of a change of residence (art. 19.1 LIS)" has been included on page 9 bis. In addition, the entity or entities that have opted for debt instalment payments, in the case of exit tax, must also be marked on page 2.

For further information, please consult the instructions for declaration of form 220.