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Practical Manual for Companies 2020.

Filling in form 200

In application of the provisions of transitional provision 24.7 of the LIS and in article 42 of the RDLeg. 4/2004 (or, where applicable, article 36 ter of Law 43/1995, of December 27, on Corporate Tax), taxpayers must enter in box [00585] "Deduction DT 24.7 LIS and art. 42 RDLeg. 4/2004» on page 14 of form 200, the amount of the deduction for reinvestment of extraordinary profits, which the taxpayer applies in the tax period subject to declaration. The amount entered in this box will be the result of completing the breakdown table on page 16 of form 200 explained below.

Completion of the table "Deductions under transitional provision 24.7 LIS and art. 42 RDLeg. 4/2004» (page 16 of form 200)

Taxpayers who apply the deduction for reinvestment of extraordinary profits must complete this table as detailed below:

  • Column "Joint limit" expresses the joint percentage that must operate on the total quota reduced by the deductions for double taxation and the bonuses, (box [00582] "Positive adjusted total quota" on page 14 of form 200), to determine the maximum amount applicable in the tax period subject to declaration.

  • Column "Year limit" indicates the last year in which the deduction can be applied, which will be the first of those indicated when the fiscal year coincides with the calendar year, provided that the fiscal year has a duration of twelve months.

  • In column "Pending/generated deduction" the amounts of the deduction generated both in the current tax period (2020) and in a period prior to the current one (2005 to 2019) will be recorded in the corresponding boxes, and which are pending application at the beginning of the tax period that is the subject of the declaration.

    Row «Deduction DT 24.7 LIS 2020 (*)» should only be completed if the entity has deductions pending application corresponding to a previous tax period that began in 2020.

  • In column "Applied in this settlement" the part (or all, if applicable) of the amounts recorded in the previous column "Deduction generated" relating to the deduction for reinvestment of extraordinary profits will be recorded, which are applied in settlement corresponding to the period subject to settlement.

    Keep in mind:

    • The amounts entered in this column may not exceed the amounts resulting from applying the limits established in each case by the regulations governing the different deduction regimes to the full quota, less the deductions for double taxation and bonuses (box [00582] "Positive adjusted full quota").

    • In box [00585] the total amounts entered in the column "Applied in this settlement" will be recorded, which must be transferred to box [00585] on page 14 of form 200 regarding the settlement of the Tax.

  • In column "Pending application in future periods" the positive difference between the amount of deductions pending at the beginning of the tax period or generated in said period in the column "Pending/generated deduction" and the amount of deductions applied in the settlement of the tax period subject to declaration in column "Applied in this settlement" will be recorded. This amount will remain pending application in future tax periods, unless the tax period being declared is the last one in which the corresponding deduction can be applied, in which case the outstanding deduction balance would be lost.

    Keep in mind:

    According to the provisions of article 44 of the RDLeg. 4/2004 , the amounts corresponding to this deduction that were not deducted in the tax period in which they were generated, may be applied in the settlements of the tax periods that conclude in the 15 immediate and successive years , counted from the end of the tax period in which said deduction was generated.

    Consequently, the settlement corresponding to the 2020 tax period subject to declaration is the last settlement in which the non-deductible amounts with respect to this deduction that was generated in 2005 can be applied.