According to the Corporate Income Tax (CIT) regulations, if the company has moved its residence outside of Spanish territory, it must integrate the difference between the market value and the tax value of the assets, unless they have been allocated to a permanent establishment (PE) of the entity located in Spanish territory.
We inform you that, if your company has moved its residence outside of Spanish territory, you must take into account the following tax aspects in accordance with article 19 of Law 27/2014 on Corporate Income Tax (LIS):
- Integration of the difference between values
If your company moves its tax residence outside of Spain, it must include in its corporate income tax base the difference between the market value and the tax value of its assets. This obligation does not apply if these assets are allocated to a permanent establishment (PE) located in Spanish territory.
- Possibility of paying in installments
If assets are transferred to a Member State of the European Union (EU) or the European Economic Area (EEA) (with a mutual assistance agreement with Spain or the EU), the resulting tax liability may be paid in five equal annual installments. This option must be exercised in the last Corporate Income Tax return filed.
- Late payment interest: This installment payment will generate late payment interest.
- No additional guarantees: No guarantees will be required for granting the installment plan, unless the collection authorities detect potential difficulties in collecting the debt within six months of the end of the voluntary self-assessment period. In such cases, additional guarantees may be required.
- Loss of the right to installment payments
The right to installment payments is lost if:
- The affected assets are transferred to third parties.
- The items are transferred to a State outside the EU or EEA.
- The taxpayer transfers their tax residence to a State outside the EU or EEA.
- The company is in liquidation, bankruptcy proceedings or equivalent procedure.
- The installment payment is not made within the corresponding period.
Attention: In any of the above cases, the executive period for debt collection will begin, which could entail additional penalties.
Example
Company "A", which does not operate in the Basque Country and Navarre, earned profits of €60,000 in 2024. On December 31 of that year, it moved its tax residence from Spain to France and decided to opt for the installment payment plan for part of its tax debt, as described in Article 19.1 of the Spanish Corporate Income Tax Law (LIS). Its assets include machinery with a market value of €15,000, but a tax value of €10,000. This machinery will be moved to France for continued use in its business. How should Company "A" complete Form 200 to opt for this installment payment plan?
Answer:
Firstly, in order to be able to opt for the installment payment of part of the tax debt under the terms provided for in article 19.1 of the LIS, Company "A" must tick box [00037] "Option for installment payment at. 19.1 LIS" on page 1 of form 200 corresponding to the 2024 tax year, as this is the last tax period in which said company will be a taxpayer of Corporate Income Tax.
Furthermore, Company "A" must make a permanent positive adjustment to the profit and loss account result of €5,000, which is the difference between the market value and the tax value in accordance with Article 19.1 of the Spanish Corporate Income Tax Law (LIS). This adjustment must be entered in the "Change of residence to Member States of the European Union or EEA (Art. 19.1 LIS)" box [01572] on page 12 of Form 200, according to the following calculations:
Market value: 15,000 euros
Tax Value: 10,000 euros
Value difference: 5,000 euros
Box [01572] «Change of residence to Member States of the European Union or EEA (art. 19.1 LIS)»: + 5,000 euros
Company "A" has completed its self-assessment by providing the following information:
Profit and loss account result: 60,000 euros
Correction to the profit and loss account result: + 5,000 euros
Taxable base: 65,000 euros
Tax rate: 25%
Full fee: 16,250 euros
Self-assessment result (box [01586]): 16,250 euros
Amount to be deposited or refunded (box [00621]): 16,250 euros
Company "A", having opted for the installment payment of part of the tax debt under the terms provided in article 19.1 of the LIS, will also have to complete the section "Option for installment payment in cases of changes of residence (art. 19.1 LIS)" on page 14 bis of form 200, although, for the calculation of box [02481] "Tax debt resulting from the installment payment art. 19.1 LIS» it will be necessary for Company “A” to separately calculate the amount in box [01586] “Result of the self-assessment (State)” using the same data contained in the self-assessment, but without including the amount of the adjustment entered in box [01572] “Change of residence to Member States of the European Union or EEA (art. 19.1 LIS)” on page 12 of form 200 for the amount of 5,000 euros. Thus, the amount to be entered in box [02481] will be the result of subtracting from box [01586] “Result of the self-assessment (State)” on page 14 bis contained in this self-assessment, the amount of the same box of the self-assessment calculated separately without including the adjustment that gives rise to this split according to article 19.1 of the LIS.
Therefore, the calculation that Company "A" must perform separately will be the following:
Profit and loss account result: 60,000 euros
Correction to the profit and loss account result: 0
Taxable base: 60,000 euros
Tax rate: 25%
Full fee: 15,000 euros
Self-assessment result (box [01586]): 15,000 euros
Amount to be deposited or refunded (box [00621]): 15,000 euros
Taking these data into account, Company "A" must enter in box [02481] "Tax debt resulting from the installment art. 19.1 LIS (State)" the amount of 1,250 euros, which results from subtracting from box [01586] of the self-assessment that we want to present incorporating the adjustment of 5,000 euros minus box [01586] of the self-assessment calculated separately without incorporating the adjustment of 5,000 euros, that is, 1,250 euros (16,250 – 15,000).
Finally, in accordance with the above, Company "A" must complete the section "Option for installment payments in cases of changes of residence (art. 19.1 LIS)" on page 14 bis of form 200 with the following amounts:
Amount included in the taxable base (State) (box [01588]): 5,000 euros
Tax debt resulting from the installment payment art. 19.1 LIS (State) (box [02481]): 1,250 euros (16,250 – 15,000)
1st Installment (State) (box [02483]): 250 euros (1,250 / 5)
Result of the self-assessment including the 1st installment of art. 19.1 LIS (State) (box [02485]): 15,250 euros (16,250 – 1,250 + 250)
Net amount to be paid including the 1st installment of art. 19.1 LIS (State) (box [02489]): 15,250 euros
Source: AEAT
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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