Skip to main content
Practical Manual for Companies 2021.

Determination of the taxable base and the gross tax liability under the individual taxation scheme, for the application of the limits established in Articles 67, sections c), d) and e), and 71.2 of the LIS

In accordance with article 67 e) of the LIS , the negative tax bases of any entity pending compensation at the time of its integration into the tax group may be compensated in the tax base of this, with the limit of 70 percent of the individual tax base of the entity itself, taking into account the eliminations and incorporations that correspond to said entity.

For tax periods starting on or after 1 January 2016, the fifteenth Additional Provision of the LIS establishes that taxpayers whose net turnover is at least 20 million euros during the 12 months prior to the date on which the tax period begins, will replace the limit established in letters d) and e) of article 67 of the LIS with the following:

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

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

Therefore, for tax periods beginning on or after January 1, 2017, taxpayers to whom the Fifteenth Additional Provision of the LIS does not apply must apply the 70 percent limit established in article 67 e) of said Law.

On the other hand, article 71.2 of the LIS establishes that the deductions of any entity pending application at the time of its inclusion in the tax group, may be deducted from the full quota of the tax group with the limit that would have corresponded to said entity in the individual tax regime, taking into account the eliminations and incorporations that correspond to said entity, in accordance with the provisions of articles 64 and 65 of the LIS.

In short, to determine the amount of negative tax bases to be offset and the deductions to be applied in the period, generated by an entity prior to its incorporation into the group, it is necessary to determine the individual taxation of the entity with group criteria taking into account the eliminations and incorporations.

To determine the individual settlement of the entity using group criteria, you must continue with the settlement from box [01029] on page 13 of form 200. Therefore, starting from the individual tax base taken into account for the calculation of the group tax base, box [01029], the eliminations and additions corresponding to the entity, box [01030], and the individual integration of the provisions of article 11.12 of the LIS, box [01031], the completion of which has not been possible on page 12 of form 200 (boxes [00415], [00211], [00416] and [00543]) must be added.

The result will determine the taxable base before the compensation of negative tax bases in box [00550], and from there the self-assessment of the positive net quota will be completed, that is, box [00592] on page 14 of form 200, always respecting the group's criteria.