7.2.6 Deduction for inter-company double taxation at 5/10%
According to the provisions of article 32 of Law 20/1990, of December 19, on the Tax Regime of Cooperatives, members of protected cooperatives have the right, in relation to cooperative returns, to a deduction in the fee of 10% of the amount received.
In the event that the returns come from a specially protected cooperative and, therefore, have benefited from the bonus provided for in article 34 of Law 20/1990, this deduction will be 5% of said returns.
In application of this provision, in key [00577] "Deduction for internal inter-company double taxation at 5/10% (cooperatives)" on page 14 of form 200, the deduction resulting from applying the percentage of 10% (5% in the case of specially protected cooperative societies) on the amount of returns computed by the taxpayer in the fiscal year will be recorded, provided that said returns come from cooperative societies that have in turn paid taxes without any bonus or reduction for Corporate Tax.
Things to keep in mind :
The deduction is determined, for each homogeneous group of securities, as follows:
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Deduction for inter-company double taxation at 5% = A x 0.05
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Deduction for inter-company double taxation at 10% = A x 0.10
Where A is the full amount of returns eligible for deduction.