I

The General Accounting Plan (PGC) approved by Royal Decree 1514/2007 of 16 November, collects in its Second Part the rules of registration and valuation that develop accounting principles and other provisions contained in the first part relating to the Conceptual Framework of Accounting. This resolution constitutes the regulatory development of the registration and valuation criteria to account for profit tax expense.

To this effect, the final provision of Royal Decree 1514/2007, dated 16 November, enables the Accounting and Audit Institute (ICAC) to adopt, by means of a resolution, binding rules that develop the abovementioned Plan and its complementary rules, in particular with regard to the rules for registration and valuation, and the rules for drawing up annual accounts.

Similarly, the final provision of Royal Decree 1515/2007 of 16 November approving the General Plan for the Accounting of Small and Medium-sized Enterprises (PGC-SMBs) and the specific accounting criteria for Micro-enterprises, provides that the regulatory developments of the PGC will be mandatory for enterprises that apply the PGC-SMBs.

Finally, the final provision of Royal Decree 1159/2010 of 17 September 2010 approving the rules for the formulation of the consolidated annual accounts (NFCAC), expresses that the ICAC may approve, by means of Resolution, binding rules to be developed by the NFCAC.

II

The accounting of the profit tax in the General Accounting Plan (PGC 90) approved by Royal Decree 1643/1990 of 20 December followed the debt method and the profit and loss account approach; system based on differences, temporary/permanent, between the accounting result and the tax base.

On the basis of this approach, and in accordance with the accrual principle, each financial year should be imputed to the profit tax expense corresponding to the accounting result before tax and not the amount of the liquid quota corresponding to the public finances for that financial year. That is to say, the tax on profits accrued for accounting purposes did not necessarily coincide with the corporation tax payable, since it is determined taking into account, among other tax criteria, the temporary imputation of revenue and expenditure, which sometimes differ from the accounting officers.

In order to be able to reconcile the above two parameters, the 16th valuation rule of the PGC 90 stated that in the case of an exercise 'differences' were created between the corporate tax base and the Before tax, it was necessary to carry out its analysis in order to determine whether or not these differences would be reversed in the future, which would, if necessary, result in temporary or permanent differences, respectively.

When there were temporary differences between the pre-tax accounting result and the corporate tax base, the amount to be paid for the levy in an exercise, including withholding and payment on account, was lower or higher than the expenditure incurred by that tax; the difference between the two measures, if it had a certain interest in relation to the future tax burden, would in the first case give rise to a deferred tax, whereas if the tax payable was higher than the accrued expense, an anticipated tax was recorded.

These concepts were developed by Resolution of the Accounting and Audit Institute of 30 April 1992 on some aspects of the sixteenth valuation standard of the PGC 90, and later in the Resolution of the Accounting and Audit Institute of 9 October 1997 to respond to the need arising from the entry into force on 1 January 1996 of Law 43/1995 of 27 December of the Corporate Tax. The Resolution of 9 October 1997 was partially revised in 2002 with the aim of clarifying the tax regime applicable to the reinvestment of extraordinary profits, incorporated in Law 43/1995 of 27 December, by the Law 24/2001, of December 27, of Fiscal, Administrative and Social Order Measures.

In addition, following the process of bringing the European legislation in the accounting field closer to the pronouncements of the International Accounting Standards Board, the ICAC, through the response to certain consultations, interpreted that in some acquisition transactions, considered as a whole, anticipated or deferred taxes (in particular on merger and exchange of securities transactions) could arise by reference to the international regulatory model, but within the accounting framework defined by the PGC 90.

For the exercises initiated as of January 1, 2008, the registration and valuation of the profit tax expense regulated in the registration and valuation standard 13. based on the debt method but uses a different systematic approach; the so-called balance sheet approach. It is therefore necessary to establish the criteria for accounting for profit-tax expenditure by following the new methodology, by developing the NRV 13. the PGC and, at the same time, collecting and clarifying the criteria included in the consultations on this issue published in the "Bulletin of the Accounting and Audit Institute" (BOICAC).

III

The resolution is divided into twenty-two articles, a repeal provision, and a final disposition.

In Article 1, the object and scope of application are regulated, and it is clarified that the Resolution is a development of the General Accounting Plan and its complementary rules that must be applied by all companies, any the legal form, both in the formulation of the individual annual accounts and, where appropriate, in the preparation of the consolidated accounts.

In Article 2, the definitions in which the balance sheet approach is based are collected. To this end, the difference between current tax expense/income (amount payable to the Public Finance in each financial year, of which the permanent differences of the PGC 90 will be included) and the deferred tax expense/income. The total income tax or revenue will be the algebraic sum of both concepts, which must however be quantified separately.

In this context, deferred taxes and advance taxes are denominated, respectively, liabilities and deferred tax assets, for which the tax base concept of an item is fundamental. assets, as defined in Article 2 (9) of the resolution.

From the tax base concept, the time difference is defined as those derived from the different valuation, accounting and fiscal, attributed to assets, liabilities and certain equity instruments of the company, in so far as they have an impact on the future tax burden. In the event that the value in books and the tax base of the assets coincide, and in the absence of negative tax bases and deductions or other tax advantages to be applied for tax purposes, the future accounting result calculated on the basis of the value in books of the above elements shall be a good estimator of the tax base for those financial years.

However, when those concepts do not coincide and, consequently, temporary differences arise, it will be necessary to recognize assets and liabilities for deferred tax, so that the company's balance sheet meets the objective of showing the true image of the future tax burden.

In Articles 3 and 4, current tax assets and liabilities are treated. The most remarkable thing about this matter compared to the content of the current PGC is the accuracy of when tax legislation establishes the possibility of converting deferred tax assets into an enforceable claim against the government. This right shall be recognised as an asset by current tax only where the requirements laid down for that purpose are met by the tax rule. Up to that point, the company will display the corresponding deferred tax asset in terms that will later be indicated.

In Articles 5 and 6 the recognition of deferred tax assets and liabilities is analyzed. In relation to the assets, the NRV 13. of the PGC, in paragraph 2.3, provides that, in accordance with the principle of prudence, only deferred tax assets will be recognised in so far as the company is likely to have a profit. Future prosecutors to allow the application of these assets.

In the resolution, in development of this criterion, a special case is identified for which it is presumed, in any case, that the deferred tax assets will be recovered; in particular, where the tax legislation provides for the possibility of future conversion of deferred tax assets into an enforceable claim against the tax administration.

This is, the tax rules appear to have set up a tax guarantee scheme for the recovery of certain deferred tax assets, provided that the conditions laid down by that tax are met. rules. Therefore, from a strictly accounting perspective, those assets, which have identified the tax standard as suitable, or qualified for conversion, would be presumed to meet the criteria for recognition on balance sheet but which of This is not to be inferred that they will qualify as current tax assets, because the credit to the Public Finance will only be born when, in time and form, the requirements laid down in the tax rule are met.

Deferred tax assets that are not included in the scope of the guarantee will follow the general regime regulated in the PGC and that was already the subject of interpretation by this Institute in consultation 10 of the "BOICAC" Number 80, December 2009, for the particular case of tax credits for negative taxable bases. According to the aforementioned consultation, the criterion of which has been reproduced in this resolution, in general terms, of obtaining a result of negative exploitation in an exercise, does not prevent the recognition of a deferred tax asset. However, where the undertaking shows a history of continuous losses, it shall be presumed, unless otherwise proved, that it is not likely to obtain earnings to compensate for such bases.

In addition, in order to be able to recognise an asset it must be likely that the company will obtain tax benefits that will allow the negative tax bases to be offset in a period not exceeding that provided for in the tax legislation, with the limit not more than 10 years from the date of the end of the financial year in those cases where the tax law allows to compensate in higher terms, except for clear evidence to the contrary, or for the entity to have tax liabilities deferred (comparable to these effects to the tax profits) with which to compensate the bases negative taxable persons, unless the time limit for the reversal of the liability is exceeded by the time limit laid down by the tax legislation to compensate for such bases. Consequently, if the tax legislation did not establish a time limit for the purpose of making such compensation, and the undertaking had recognised in the balance sheet liabilities deferred tax with an indeterminate reversal period, the assets by Deferred tax with a recovery period of more than ten years may be recognised for an amount equivalent to deferred tax liabilities.

According to what is indicated, the main novelty introduced by the resolution at this point is the revision of the ten-year time limit to which the analysis on the recovery of all assets by tax should be extended. deferred, which, although maintained as a benchmark for the exercises initiated from 1 January 2015, may be exceeded in the cases where the company provides clear evidence of the recovery of its deferred tax assets in a time-term higher.

Then, in the same paragraph, it is clarified that in assessing whether the entity will have sufficient fiscal gains in future years, taxable items that come from deductible temporary differences should be excluded. are expected in future exercises. This could be the case for a non-deductible impairment loss until a certain milestone occurs. For the purposes of assessing whether there will be tax gains at the time when it is tax deductible (and thus being able to recognise a deferred tax asset), the rule appears to exclude the tax base which in turn brings about a positive adjustment for other non-deductible expenditure, as could be the case for a provision accounted for in the financial year in which the deterioration is deductible, because in turn the latter will bring with it the registration of a deferred tax asset as long as future tax gains are likely.

In Article 7, deferred tax liabilities are set to be valued according to the expected tax rates at the time of their reversal, according to the rules that are in force or approved and pending publication on the date for the closing of the financial year, and in accordance with the manner in which the asset or liability is reasonably expected to be recovered or paid; to conclude by indicating that deferred tax liabilities should not be discounted.

As indicated above, a special scheme for the recognition and valuation of deferred tax liabilities, which constitutes the interpretation of the accounting treatment of debts by the Member States, is inferred from the above. deferred tax within the general framework of non-financial provisions or liabilities.

This closes the way to other possible approaches which, in the absence of this express reference, could be considered, for example, if a deferred tax liability is to be recognised in individual annual accounts by the fund of trade implicit in a strategic investment in a group company where the tax legislation provides for its deductibility/amortisation, or the tax effect associated with capital grants received by loss-making entities whose cancellation will rarely cause a resource output. In the cases that have been indicated, the corresponding deferred tax liabilities should be recognised.

On the valuation of deferred tax assets and liabilities, Article 7 states that tax rules may provide that, depending on the way in which the entity is to recover (liquidate) the amount in books of an asset (liability) or the link in the taxation of tax profits to the distribution or non-dividend, either of the following circumstances is affected: (a) The rate of charge to be applied when the institution recovers or liquide the amount in books of the asset (liability); (b) The tax base of the asset (liability).

In such cases, the entity shall measure assets and deferred tax liabilities using the rate and tax base that are consistent with how you expect to recover or pay for the corresponding item.

This criterion is in line with the regulation contained in paragraphs 51 to 52B of the NIC-EU 12 and the examples set out in the international standard deal exclusively with both cases: different types of tax (in terms of nominal) or different tax base.

However, the incidence of temporary differences in the future tax burden is also conditioned by the remaining tax elements that ultimately make up effective taxation, such as possible reductions. in the tax base associated with increases in own funds (in this sense, the new scheme provided for in Article 25 of Law 27/2014 of 27 November 2014 on the Company Tax which introduces the so-called reserve of capital) is considered to be In the case of the Commission, the Commission will be able to case of the new scheme provided for in Article 105 of Law 27/2014 of 27 November, introducing the so-called tax base levelling reserve), certain bonuses (for example, those covered by Articles 33 and 34 of the Law) 27/2014 of 27 November) or deductions in the quota (for example, the deduction for reversal of temporary measures as regulated by the transitional provision in the seventh paragraph of Law 27/2014 of 27 November).

That is, when quantifying the tax effect of an operation it is equivalent to declare the exempt income, apply a zero-percent tax rate, or grant a deduction for an amount equal to the fee integrates.

Thus, for example, the capitalization reserve will be treated as a lower current tax. In addition, in cases of insufficient tax base, the outstanding amounts would result in the birth of a temporary deductible difference with an accounting scheme similar to those which they bring about the deductions to be applied by Quota insufficiency. Finally, in the event that the non-compliance with the requirements is produced, the company should account for the corresponding current tax liability.

Another of the novelties of Law 27/2014, of 27 November, is the reserve of leveling of taxable bases. The levelling reserve is set up as a tax incentive for the special scheme for small-scale enterprises for institutions which apply the 25% levy rate which will be able to undermine their positive tax base by up to 10%. (a) the amount that allows the company to defer taxation pending the emergence of a negative tax base or the expiry of the five-year period without any tax loss being incurred.

In this case, from a strictly accounting point of view, the taxable base could be identified as a taxable temporary difference associated with a non-book-value liability but with a tax base, which would be recognition of a deferred tax liability whose reversal would occur in either of the two scenarios regulated by the tax law (generation of negative tax bases or the five-year period without incurring losses (fiscal).

Article 7 of Law 16/2012 of 27 December, adopting various tax measures aimed at the consolidation of public finances and the promotion of economic activity, established for certain institutions a deduction limit of 70% on the basis of assessment of the accounting depreciation of tangible, intangible and real estate assets during the tax periods started in the years 2013 and 2014. Depreciation that would not be fiscally deductible would be deducted in a linear manner in the following ten years or, optionally, in the life of the asset item, from the first tax period to be initiated within 2015.

This deferred deductibility will have resulted in the recognition of the corresponding deferred tax assets, initially valued by the application, if any, of the general charge rate of 30 percent. In principle, the approval of a general tax rate of 25% in Law 27/2014 of 27 November would result in a reduction in the amount of deferred tax assets and ultimately a lower final deductibility of those expenses.

However, the regulation contained in the transitional provision in the seventh paragraph of that law, which gives a deduction in the quota, seems to have been approved in order to preserve the neutrality of the tax reform in This is the case for the deductibility of these expenses. This is, with this transitional regime, it seems to be guaranteed the reversal of the temporary difference with a nominal tax rate of 30 percent in the measure that with the approved tax advantage is compensated for the lower deductibility of the expenditure.

In the same way, the thirteenth transitional provision provides for a transitional regime to preserve the effective taxation of taxpayers who would have received the balance sheet update provided for in Article 9 of the Treaty. Law 16/2012 of 27 December. In this case, as in the previous case, the deduction in the approved full quota will allow a deductibility in the revision of the tax base of the assets, for the whole of the operation, at a nominal charge rate of 30%. Accordingly, the deferred tax assets associated with these transactions should not be corrected because the tax regulation has provided for a deductibility of the transaction, as a whole, equivalent to that which they had before the reduction was approved. of the lien type.

Article 8 reproduces the regulation of the NRV 13. PGC on the timing of permanent differences and deductions and other tax advantages applied in an exercise, and clarifies that this accounting treatment should be followed. the amount of the tax incentive shall be recognised as an income directly imputed to the equity, under a specific heading, for subsequent reclassification to the profit and loss account as a lower profit tax expense, on a systematic and rational basis in a manner correlated to the expenditure related to such permanent differences and deductions and other tax advantages.

Article 9 deals with the particularities associated with the accounting treatment of the tax effect on the entities that are taxed on a scheme based on the tax allocation of the income to the members or unit-holders; in the current Law 27/2014, of 27 November, brings together these characteristics, the special system of taxation of economic, Spanish and European interest groups, and of temporary joint ventures.

From a strictly accounting point of view, and as far as the entity that imputes its income is concerned, the resolution assumes the criteria published in the 1997 precedent and clarifies three aspects:

(a) When the entity only imputes a portion of the income (if the partners are non-residents without permanent establishment, the entity is taxed according to the general rules and, consequently, no income is "transparent"), if the proportion of the taxable amount by which it is taxed is subsequently altered, where appropriate, the corresponding adjustment in the amounts of the deferred tax assets and liabilities.

(b) The amount of tax elements that are "transparent" (current tax assets on the part attributable to the partners that support the imputation of the tax base; residents in Spain or non-residents with permanent establishment), as it is not directly recovered by the company, it will have the consideration of an expense of a tax nature, which will appear in the item "Other taxes" of the profit and loss account, for this way to ensure that the income tax item represents what is strictly tax on profits, and preserve it from any other tax concept that does not participate in this nature.

(c) The temporary unions of undertakings lack legal personality for commercial purposes and, therefore, commercial law does not impose an obligation on them to draw up annual accounts, without prejudice to the obligations imposed by the the tax rule as taxable persons. It is the members of the temporary union of undertakings who are obliged to register on their balance sheet the proportional share corresponding to them, depending on their share, of the jointly controlled assets of the liabilities incurred. together, as well as the assets affected by the joint holding which are under their control and the liabilities incurred as a result of the joint venture (aggregate annotations of the transactions for periods not exceeding the Article 28 (2) of the Code of Commerce), from which it is apparent that the tax effect produced in these entities shall be registered by the members of the entities.

Article 10 regulates the registration of the tax on profits in the partners or members of these entities. From this perspective, the resolution also assumes the criteria published in the ICAC Resolution of 9 October 1997, and clarifies three aspects:

(a) The taxable bases which the institutions charge to the partner-partners shall be treated by the partners as a permanent difference in the calculation of the expenditure incurred by tax on profits, except for the part of the base the taxable amount is expected to be either distributed as a dividend in the short term or is likely to be reversed in the short term by the disposal of the shares, reflecting in these cases as a difference temporary.

However, the partners may, where appropriate, reflect the tax base charged by the institution as a temporary difference by applying the general criteria set out in the PGC and in this resolution, and having The principle of uniformity should be taken into account in such a way that an option is maintained over time and with respect to the different entities in which they may participate. Therefore, in this resolution, it is proposed to keep the accounting option regulated in the immediate antecedent on the basis of the same arguments that were used at the time and which are reproduced below:

" The resident partners of the transparent companies shall account for the tax expense arising from the allocation of taxable bases, in accordance with their nature, in the financial year which is imputable; the amount of the tax base charged, as a general rule, could be treated as a temporary difference. However, this treatment results in a number of difficulties which, although they have specific solutions, may lead to an excessive complication in the accounting record to be performed by partner-partners.

This accounting record requires, first of all, the exact quantification of the time difference, which in turn requires information on the permanent differences that may exist in the determination of the base. (a) taxable persons in a transparent company, since the existence of permanent differences in the transparent company determines that these differences must also be considered by the partner-partner, thereby altering the amount of the the time difference that occurs in the partners as a result of the base imputation taxable. Secondly, it will be necessary to verify compliance with the requirements necessary for temporary differences to result in the accounting of advance taxes, taking into account the uncertainty that may occur in many cases over the reversal of such temporary differences.

For the purposes of quantifying the time difference, the following situations may occur:

-That the net balance of the permanent differences increases the positive accounting result of the transparent society and that therefore the corporate tax expense of the partner is increased in the amount corresponding to the same. This would require the partner to treat only that part of the tax base that does not correspond to the permanent differences as a temporary difference.

-That the net balance of the permanent differences eliminates the negative accounting result of the transparent society, producing a positive tax base, which will increase the corporate tax expense of the partner in the amount corresponding to the taxable amount charged. In this case the partner could not consider that there is a time difference.

-That the net balance of the permanent differences decreases the positive accounting result of the transparent society, minoring the expense of the partner's company tax in the amount corresponding to them; in this The time difference to be considered by the partner shall be that which corresponds to the said accounting result, without the latter being reduced by the permanent differences to be considered. A different situation is if these permanent differences result in a negative tax base, in which case only the amount of the net balance of the same could be taken into account to match the tax base.

The reversal of the time differences thus quantified will generally occur when dividends are distributed by the transparent company, or when the equity shares in the transparent company are sold.

When the necessary requirements, established in general in this resolution, are not met, so that the temporary differences result in the accounting of the anticipated taxes, they will not be able to register anticipated taxes due to the uncertainty that weighs on the future realization of the same and in application of the principle of prudence.

For all of the above, this resolution specifies rules that allow the difficulties described above to be overcome, by configuring the imputation of the tax base as a temporary difference only in certain cases. It has been decided, in short, for a simpler and more consistent treatment with the business reality, establishing that the partners of transparent companies must include in the scheme of calculation of the corporation tax the tax base imputed by the transparent company as a permanent difference in the exercise that is fiscally attributable, and in the event that there is evidence that part of it is to be distributed as a dividend, or the participation in the capital in the short term, the corresponding advance tax will be recorded, all without prejudice to the fact that the companies which consider it are able to carry out their accounting records in accordance with the above, with strict application of the principles of prudence and uniformity. In any case, the criteria used must be indicated in the memory. "

In accordance with Article 46 of Law 27/2014 of 27 November 2014, the charges shall be made to persons or entities holding the economic rights inherent in the quality of the member or the member undertaking on the day of the the conclusion of the tax period of the entity under this scheme, in the proportion resulting from the entity's statutes.

From a strictly accounting point of view, the entity that chooses to defer the imputation of a tax gain on the taxable base of the following year, at the end of the financial year, has already incurred an obligation to whose cancellation is expected to result in a resource exit and should therefore account for the corresponding liability. Similarly, in the event that the income is negative it seems appropriate to account for the tax credit provided that the conditions included in the resolution are met.

Economic interest groups, unlike the temporary unions of companies, do have legal personality for commercial purposes and are therefore obliged to keep accounts. The above assumes that the participation of the shareholders in the net worth of the pool should, as a general rule, follow a treatment similar to that provided for in the PGC for investments in the net worth of the capital companies without Therefore, the tax allocation of the income implies that it is imputed to the individual accounts of the members, since the method of participation is only applicable in certain cases for the purposes of formulating the annual accounts consolidated.

b) A second aspect that is clarified is that the amount of the tax elements that are transparent (current tax assets) will be treated contably as a tax on the tax on profits accrued in the exercise.

(c) Finally, it is also noted that the members of the temporary joint ventures shall record in their annual accounts: (i) the assets, liabilities, income and expenses of the union in accordance with the NRV 20. PGC, and; (ii) the tax effect resulting from the integration of the above elements in accordance with the general rules contained in the resolution, taking into account the circumstances in the temporary union.

Article 11 clarifies the criteria to be followed to account for the income tax expense in the individual annual accounts of the companies that are taxed in the special tax consolidation regime.

To this effect, it has been stated first of all that in the elimination of results by internal transactions permanent differences can occur, as would be the case, in general, of the elimination of the dividends distributed by the participating companies.

On the other hand, regarding the elimination of other benefits generated in internal operations that must be eliminated, and in line with the criterion published in the consultation 5 of "BOICAC number 89", March 2012, expresses that in order to provide adequate accounting treatment to the question, as a preliminary step it is necessary to determine whether the transferring company retains, once the element's absence is acknowledged, some form of tax liability that would permit the identification of a a liability without an accounting value but with a tax base, which in turn will result in the registration of a deferred tax liability in the transferring company that has accounted for the result of the transaction in its individual annual accounts.

In relation to the negative tax bases, it is concluded that if a company of the group is in the exercise of a negative tax result, equivalent to a negative tax base, and the set of companies that form the group compensates all or part of it in the consolidated declaration of the tax on profits, for the part of the negative tax result compensated, will emerge a credit and mutual debit, between the society to which it corresponds and the society that makes up for it.

At this point it seems appropriate to clarify that the legal relationship described, as the tax group or an entity remains part of it, will emerge in the light of the agreements that will be established in the of the group, in the absence of any other criteria derived from the tax rule.

On the other hand, it is also appropriate to indicate that the company which has incurred tax losses should only recognise a claim vis-à-vis another company of the group, in general, the dominant company, to the extent that the the negative tax base has been the subject of compensation in the liquidation of the tax. Otherwise, the credit to the public treasury should be shown in the annual accounts of the company that has generated the tax losses.

In Article 12, some relevant clarifications are made on foreign taxes of a similar nature to the Spanish corporation tax.

It is indicated that in the exceptional circumstances in which the income obtained abroad is not exempt from taxation in Spain, the tax effect of the difference will also have to be considered independently between the value in books and the tax base (Spanish) of the property assets affected by this activity. In the case of negative income, the rule clarifies that only one deferred tax asset can be recognised by applying the tax rate expected under Spanish tax law, where it is likely that the entity will meet the requirements provided for in the tax legislation to ensure that the right to compensation for losses is incurred.

Article 18 deals with provisions and contingencies arising from the profit tax.

In accordance with the provisions of the NRV 15th. Provisions and contingencies of the PGC, in general, the obligations present of a fiscal nature, whether or not they are derived from an inspection report, shall cause in the exercise in which they arise, the corresponding allocation to the provision for the estimated amount of the tax liability.

To this effect, it should be clarified that in no case will it be acceptable to justify the absence of a registration of an obligation in the event of an administrative check or not to qualify the obligation as remote when a discrepancy arises as a result of the said verification or inspection, or as a result of the criteria maintained by the Public Administrations or the Courts of Justice on facts of a similar nature to which refers to the obligation.

In Articles 19, 20 and 21, for the sake of better systematic regulation, the simplified registration and valuation criteria for profit tax expenditure have been reproduced without the need for the introduction of the an additional development.

Article 22 sets out the rules on the rules for drawing up annual accounts.

To conclude, it should be noted that the resolution has also been reproduced for reasons of systematic regulation, and without introducing relevant innovations, the set of requirements to include in the normal memory regulated in the PGC and in the NFCAC.

In addition, considering the change in the criterion of the incorporation of a presumption, which admits the proof to the contrary, on the time limit to which the analysis of recovery of deferred tax assets should be extended, As the tax developments introduced by Law 27/2014 of 27 November, the tax effect of which is regulated in the annual accounts in this resolution, it has been considered appropriate to establish its mandatory application for the financial years start from 1 January 2015.

For all of the above, in accordance with the final provision of Royal Decree 1514/2007 of 16 November, and the final provision of Royal Decree 1159/2010 of 17 September 2010, and after obtaining the mandatory report of the Ministry of Finance and Public Administrations, in accordance with the provisions of the seventh Royal Decree 345/2012 of 10 February 2012, the following resolution is issued:

CHAPTER I

General provisions

Article 1. Object and scope of application.

1. The resolution aims to develop the criteria for accounting for the tax expense of benefits regulated in the General Accounting Plan, the General Plan of Accounting for Small and Medium-sized Enterprises and the Standards for the Formulation of the Consolidated Annual Accounts.

2. Consequently, this resolution is mandatory for all undertakings, irrespective of their legal form, to apply those rules, both in the formulation of the individual annual accounts and, where appropriate, in the drawing up of the of consolidated accounts.

Article 2. Definitions.

1. Profit taxes: are those direct taxes, whether domestic or foreign, that are settled from a business result calculated in accordance with the tax rules that are applicable.

When such calculation is not performed on the basis of actual economic transactions, but through the use of objective signs, indices and modules, the part of this resolution corresponding to the deferred tax shall not apply. without prejudice to the fact that where such procedures are applied only partially in the calculation of the tax or in the determination of income, assets or liabilities may arise from deferred tax.

2. Income tax (income): will include the share of the income tax (income) from the current tax and the part corresponding to the expense (income) for the deferred tax.

Current tax expense (income) will correspond to the cancellation of deductions and payments on account as well as the recognition of current tax assets and liabilities.

The deferred tax expense (income) shall be the same as the recognition and cancellation of the deferred tax assets and liabilities, as well as, where applicable, the recognition and allocation to the loss account and income from income directly imputed to the net worth that may result from the accounting of those deductions and other tax advantages that have the economic nature of the grant.

3. Current tax: the current tax is the amount that the company satisfies as a result of tax settlements or tax on profit for an exercise. Deductions and other tax advantages in the tax rate, excluding withholding and payment on account, as well as the compensable tax losses from previous years and effectively applied in the latter, will result in a lower amount of tax. current tax.

The excess tax loss that cannot be offset in this way and is pending for compensation in future years may result in the recognition of a deferred tax asset in accordance with the provisions of the present resolution.

In those jurisdictions that allow the return of fees paid in previous years due to a tax loss in the current financial year, or the conversion of deferred tax assets into a receivable credit the tax administration, the current tax will be the share of previous years that the company recovers as a result of the tax settlements of the tax or tax on the profit related to the exercise, or the amount of (a) the amount of the amount to be paid by the tax authorities; conversion, respectively.

4. Current tax assets and liabilities: if the amount already paid, corresponding to the current financial year and the previous financial year, exceeds the current tax for those financial years, the excess shall be recognised as an asset. On the contrary, the current tax will be recognised as a liability to the extent that it is pending payment.

5. Deferred tax assets: are the amounts of tax or tax on the benefit to be recovered in future, related to:

a) The deductible temporary differences;

b) The right to compensate for tax losses; and

c) Deductions and other unused tax benefits, which are pending tax enforcement.

Deferred tax assets do not constitute a charge against the tax administration.

6. Deferred tax liabilities: are the amounts to be paid in the future by the company as a result of tax settlements or tax on profit, related to taxable temporary differences.

7. Temporary difference: are those arising from the different valuation, accounting and tax, attributed to the assets, liabilities and certain equity instruments of the company, in so far as they have an impact on the tax burden future.

Temporary differences occur normally, due to the existence of temporary differences between the tax base and the total accounting result before tax, the origin of which is found in the different temporary criteria. of imputation used to determine both magnitudes and thus revert to subsequent periods.

Temporary differences may also arise in a business combination or in the initial recognition of assets and liabilities, if their book value differs from that attributed for tax purposes.

The temporary differences are sorted in:

(a) taxable temporary differences, which are those that will result in higher amounts to be paid or lower amounts to be returned for taxes in future years, normally as assets are recovered or settled the liabilities from which they are derived.

b) Deductible Temporary Differences, which are those that will result in lower amounts payable or higher amounts to be returned for taxes in future years, normally as assets are recovered or settled. the liabilities from which they are derived.

8. Permanent difference: are the differences between the net amount of the total revenue and expenditure of the financial year and the tax base that are not identified as temporary differences.

9. Tax base of an asset or liability: is the tax valuation or amount attributed to that item in accordance with applicable tax law.

The tax base of an asset is the amount that will be deductible from the economic benefits that, for tax purposes, the entity obtains in the future, when it retrieves the amount in books of said asset. If such economic benefits are not taxed, the tax base of the asset will be equal to its amount in books.

The tax base of a liability is its value in books minus any amount that, if any, is tax deductible in respect of such a departure in future periods. In the case of income from ordinary activities received in advance, the tax base shall be its value in books minus any amount of income from ordinary activities that is not taxable in future periods.

There may be some element that has a fiscal basis even though it lacks accounting value and therefore is not recognized as an asset or liability on the balance sheet; in particular, this could occur when income and expenses are recognized. whose taxation and deductibility, respectively, occurs at a time after its accounting recognition, and the record of which does not give rise to the birth or the change in value in a temporary difference of another item on the balance sheet. In such cases, a temporary difference shall arise in accordance with the terms and conditions set out in this resolution.

When the tax base of an asset or liability is not evident, as could be the case if the tax base depends on how the tax base is expected to be recovered or liquidated, the tax base should be considered as the principle on which this resolution is based; that is, that the company must recognise a liability for deferred tax, provided that the recovery or liquidation of the carrying amount of an asset or liability is to generate future tax payments higher (lower) than those that would result if such recoveries or settlements had no consequences Tax, without prejudice to the exceptions and time limits regulated in the resolution itself.

10. Profit (loss) tax or taxable amount: is the result of the exercise of an entity, calculated in accordance with the rules established by applicable tax rules. Tax gain may arise from the possibility of taking advantage of tax planning opportunities.

11. Total accounting result or total revenue and expenditure: is the economic result of an entity (gain or loss), calculated in accordance with accounting rules by difference between all revenue and expenditure of the financial year, irrespective of the the pool of the net worth in which they have been recognised.

12. Tax planning opportunities: these are actions that the entity can undertake, within the legal framework, to create or increase fiscal gains in a given financial year, through the application of the different options or alternatives offered by tax law, before it prescribes the possibility of deducting a tax loss or other credit for prior operations, or to defer benefits for tax purposes.

CHAPTER II

Current tax assets and liabilities

Article 3. Recognition.

1. The current tax for the financial year and the previous financial years shall be recognised as a liability to the extent that it is due to tax and to be paid. Otherwise, if the amount already paid, corresponding to the current financial year and the preceding financial year, exceeds the current tax for those financial years, the excess shall be recognised as an asset.

2. In the event that the company is taxed in some jurisdiction to allow the return of the fees paid in previous years because of a tax loss in the current financial year, the amount to be paid for the return of the fees paid in previous exercises will be recognized as a current tax asset.

3. Where tax legislation provides for the possibility of converting deferred tax assets into an enforceable claim vis-à-vis the tax administration, a current tax asset shall also be recognised when the requirements are met. provided for this purpose by the tax rule.

Article 4. Assessment.

1. Current tax assets and liabilities shall be valued for the amounts expected to be paid or recovered from the tax authorities, in accordance with current or approved regulations and pending publication at the end of the financial year.

2. If its maturity exceeds the year, the company shall consider the financial effect of the deferral, except in the case of withholding and payment to account which, supported or carried out in an exercise, shall be applied in the liquidation to be carried out in the next exercise.

CHAPTER III

Deferred tax assets and liabilities

Article 5. Recognition of deferred tax assets.

1. In accordance with the principle of prudence, only deferred tax assets will be recognised in so far as it is likely that the company will have future tax revenues that will allow the application of these assets. In any event, this circumstance shall be considered when the tax legislation provides for the possibility of the future conversion of assets by deferred tax into an enforceable claim against the tax authorities in respect of the assets capable of conversion.

2. Without prejudice to the foregoing, a deferred tax asset shall not be recognised where the deductible temporary difference has arisen from the initial recognition of an asset or liability in a transaction that is not a combination of business and in addition, on the date on which the transaction was carried out, it did not affect either the accounting result or the tax base. In addition, subsequent changes in the deferred tax asset that have not been initially registered will also not be recognised (for example, as, where appropriate, the fixed assets are amortised).

3. Unless proof to the contrary, the company is not considered likely to have future tax profits in the following assumptions:

(a) Where it is expected that its future recovery is to occur within a period of more than ten years from the date of the close of the financial year, irrespective of the nature of the deferred tax asset.

(b) In the case of claims arising from deductions and other tax advantages to be applied fiscally for quota insufficiency, where the activity or performance resulting from the performance of the Right to deduction or bonus, there are reasonable doubts about compliance with the requirements to make them effective.

4. In addition, in relation to the right to compensate for tax losses, the following rules will be observed:

a) Obtaining a negative operating result in an exercise does not prevent the recognition of a deferred tax asset. However, where the undertaking shows a history of continuous losses, it shall be presumed, unless otherwise proved, that it is not likely to obtain earnings to compensate for such bases.

(b) In order to be able to recognise an asset, it must be likely that the company will obtain tax benefits to compensate for the above negative tax bases within a period not exceeding that provided for in the tax legislation, with the a maximum limit of 10 years from the date of the end of the financial year, unless proof is likely to be recovered within a longer period, in cases where the tax legislation allows for compensation in higher instalments or does not establish a time limit to be able to practice compensation.

5. In any case, the business plan used by the company to make its estimates of future tax profits should be in line with the market reality and the specificities of the entity.

6. On the contrary, it will be likely that future tax gains will be available in sufficient amounts to be able to recover deferred tax assets, provided that there are sufficient taxable time differences, related to the same tax authority, and referred to the same taxable person, whose reversal is expected:

a) In the same fiscal year in which the deductible temporary differences are foreseen; or

b) In exercises in which a tax loss, arising from a deductible temporary difference, may be compensated by prior or subsequent gains.

When assessing whether the entity will have sufficient fiscal gains in future exercises, taxable items that come from deductible temporary differences that are expected in future years should be excluded.

7. If the book amount of goodwill arising in a business combination is less than its tax base, the difference will result in a deferred tax asset that will be recognized as part of the combination accounting if comply with the requirements set out in the preceding paragraphs.

8. On the closing date of each financial year, the company will reconsider the accounting of all deferred tax assets. Therefore, at that time, the company will unsubscribe a previously recognised asset if its recovery is no longer likely, or will record any assets of this previously unrecognised nature, provided it is likely that the company will (a) provide sufficient future tax revenue to enable its implementation and the other rules are met.

In particular, if a deferred tax asset was not the subject of an accounting record because its future recovery was envisaged within a period of more than ten years, and it was not possible to refute the presumption of its recognition, no account of the circumstances provided for in paragraph 6 shall be the subject of an accounting record in the first financial year in which the time limit for future reversal does not exceed 10 years from the date of the end of the financial year, or any of the situations referred to in paragraph 6.

9. In the case of business combinations, and unless the accounting error reporting standard of the General Accounting Plan is applied, where the initial accounting for the combination was not recognised separately by deferred tax on the acquired company, because it does not meet the recognition criteria, and subsequently it proceeds to recognise those assets, it will be acted as follows:

(a) Deferred tax assets that are recognised within the initial valuation period of the business combination, and which come from new information on facts and circumstances that existed at the date of acquisition; reduce, where appropriate, the carrying amount of the goodwill related to that acquisition. If the carrying amount of that goodwill is null, any deferred tax assets must be recognized as an increase in the negative difference.

(b) Deferred tax assets that are recognised after the said valuation period, or within the valuation period but which bring about facts or circumstances that did not exist at the date of acquisition, shall not give rise to place for adjustments in the book amount of the goodwill or the negative difference, and shall be recognised in profit or loss, or if the rule so requires, directly in equity.

Article 6. Recognition of deferred tax liabilities.

1. In general, a deferred tax liability shall be recognised for all taxable temporary differences unless they have arisen from:

a) The initial recognition of a goodwill. However, deferred tax liabilities related to a goodwill shall be recorded as long as they have not arisen from their initial recognition. Therefore, where the tax law establishes the deductibility of losses from impairment of goodwill or systematic amortization, regardless of accounting imputation, if differences arise in subsequent periods temporary, deferred tax liabilities are recognised in relation to this part of the goodwill.

(b) The initial recognition of an asset or liability in a transaction that is not a combination of business and also, at the date of the transaction, did not affect either the accounting result or the tax base. In addition, subsequent changes in the deferred tax liability that have not been initially recorded (for example, as, where applicable, the asset is amortised) will also not be recognised.

2. To these exclusive effects, the equity interests of other companies do not themselves constitute a business. However, where the element is acquired in exchange for instruments of its own assets, the application of this waiver may in no case lead to an increase in the company's net worth by an amount exceeding the fair value. of the asset item, after deduction of the tax effect.

Article 7. Valuation of deferred tax assets and liabilities.

1. Deferred tax assets and liabilities shall be valued according to the rates expected at the time of their reversal, according to the rules that are in force or approved and pending publication on the date of the end of the financial year, and according to the way in which the asset or liability is reasonably expected to be recovered or paid.

2. Tax rules may provide that, depending on the way in which the entity is to recover (liquidate) the carrying amount of an asset (liability) or the link of taxation of tax profits to the distribution or not dividends, are affected either or both of the following circumstances:

(a) The nominal tax rate to be applied when the entity recovers or liquies the carrying amount of the asset or liability.

b) The tax base of the asset or liability.

In such cases, the entity shall measure assets and deferred tax liabilities using the rate and tax base that are consistent with how you expect to recover or pay for the corresponding item.

3. Where, in accordance with the applicable rules, there is a benefit tax rate with different tax rates, deferred tax assets and liabilities shall be valued using the average rate of charge expected at the time of payment. the reversal, calculated in accordance with the following paragraph.

4. The average rate expected in the reversion exercise is the result of dividing the expected full share by the expected tax base for that year. The determination of the expected tax base shall include the assets and liabilities that will be reversed in the financial year, taking into account the manner in which they are reasonably expected to recover, as well as the assets and liabilities to be recognised. The expected full quota will be the result of applying to the expected tax base the different types of charges expected.

5. Notwithstanding the foregoing, where in accordance with the principle of relative importance, the effect of the calculation of the rate of charge expected on the valuation of deferred tax assets and liabilities is not relevant quantitatively or qualitatively, or the set of estimates to be made to introduce a high degree of uncertainty, such assets and liabilities may be assessed using the average rate of charge for the financial year in which they are recognised.

6. Where appropriate, the amendment of the tax legislation (in particular the modification of the tax rates) and the evolution of the economic situation of the company will result in the corresponding variation in the amount of the liabilities and assets by deferred tax.

7. Deferred tax assets and liabilities should not be discounted.

CHAPTER IV

Persistent differences and other tax advantages

Article 8. Permanent differences and other tax advantages.

1. The minoron of tax expense arising from permanent differences and deductions and other tax advantages applied in an exercise may be reported as an income directly imputed to the net worth for its purposes. further recognition in the profit and loss account as a lower tax expense on a systematic and rational basis in a manner correlated to the expenses linked to such permanent differences and deductions and other advantages Tax, in accordance with the imputation criteria set out in the registration rule and assessment of "Grants, donations and legacy received" from the General Accounting Plan.

2. In order to carry out the period referred to in the previous number, the General Accounting Plan includes the accounts 1370. "Tax revenue for permanent differences to be distributed in various financial years" and 1371. "Tax income by deductions and allowances to be distributed in various financial years", contained in the section of net worth, A-2) Adjustments for change of value, III. Others, from the normal model of Balance, whose movement is as follows:

(a) The 834 accounts shall be paid at the end of the financial year. "Tax revenue from permanent differences" and 835. "Tax revenue from deductions and bonuses."

(b) To be charged, at the end of the financial year, on the part of the profit and loss account, to the accounts 836. "Transfer of permanent differences" and 837. "Transfer of deductions and bonuses".

CHAPTER V

Special Taxation Regimes

Article 9. Special schemes based on imputation of income.

1. The accounting record of the tax effect on entities that are taxed, in whole or in part, by applying a scheme that is based on the imputation of the income generated to the partners or members of these entities, will be carried out according to the rules contained in this resolution, without prejudice to the specific specificities set out in the following numbers.

2. Where the institution only imputes a portion of the income, if the proportion of the tax base for which it is taxed is subsequently altered, the corresponding adjustment in the amounts of the deferred tax assets and liabilities shall be made. These adjustments shall be accounted for in accordance with the general criteria referred to in Article 22 (2

.

3. The amount of current tax assets (retained amounts, fractional payments and income to account) that institutions can recognise as well as, in cases where these entities are partners in other companies subject to a based system in the allocation of income, from the fees paid by the latter to the institution, which exceeds the amount resulting from the payment of the full amount of the tax on the deductions and allowances corresponding to the non-payment of the direct recovery by the company on the part attributable to the partners who must bear the imputation of the tax base shall be considered to be an expenditure of a tax nature, which shall be included in the item "Other taxes" in the profit and loss account.

4. In temporary joint ventures (UTE, s), in accordance with the criteria set out in the "Joint Business" registration and valuation rule of the General Accounting Plan, the unit-holders shall record the proportional share of their balance sheet. it corresponds to, on the basis of its share, the jointly controlled assets, the liabilities incurred jointly, as well as the assets affected by the joint holding which are under its control and the liabilities incurred as a result of the joint venture, from what is apparent that the tax effect produced in the UTE, s will be recorded by the participants of the same.

5. For the purposes of the accounting record of profit tax on entities that are taxed, in whole or in part, by applying a scheme that is based on the allocation of the income generated to the partners or members of these entities, the Account of the General Accounting Plan number 632 whose name is:

632. "Transparent entities, tax effect".

6320. "Amounts to account not recoverable by transparent entities"

Collects the amounts withheld, fractional payments, income on account and the fees charged to the entities, which exceed the amount resulting from minoring the full tax on deductions and bonuses that correspond, which cannot be directly recovered by these entities.

It will appear in the "Other Taxes" item of the profit and loss account.

Your move is as follows:

(a) It shall be charged for the withholding, fractional payments, income to account and non-recoverable fees directly from the Public Finance, with credit to the account 4732. "Public Finance, debtor with transparent entities", to be opened in account 473. "Public finance, withholding and payments on account".

(b) The account shall be credited to the account 129. Profit and loss.

6323. "Negative adjustments in taxation on transparent entities".

Amount of the decrease adjustments, known in the exercise, of deferred tax assets, or increase, equally known in the exercise, of deferred tax liabilities, in transparent entities.

The profit and loss account shall be included in the item "Profit tax".

Your move is as follows:

(a) The amount of the adjustments will be charged, with credit to the accounts of deferred tax liabilities or deferred tax assets with origin in deductible temporary differences, credit for losses to be offset or by deductions and allowances in the quota, as appropriate.

(b) The balance shall be paid at the end of the financial year in charge of account 129. Profit and loss.

6328. "Positive adjustments in taxation on transparent entities".

Amount of increase adjustments, known in the exercise, of deferred tax assets, or decrease, equally known in the exercise, of deferred tax liabilities, in transparent entities.

The profit and loss account shall be included in the "Company tax" item.

Your move is as follows:

(a) It shall be paid for the amount of the adjustments, from the representative accounts of deferred tax liabilities or deferred tax assets with origin in deductible temporary differences, credit for losses to be offset or by deductions and allowances in the quota, as appropriate.

(b) The balance shall be charged at the end of the financial year with credit to account 129. Profit and loss.

Article 10. Partners or members of entities subject to special schemes based on imputation of income.

1. The accounting record of the tax effect on the partners or unit-holders of the entities which tax the application of a scheme based on the tax allocation of the income shall be carried out in accordance with the general rules contained in the resolution, without prejudice to the specific specificities set out in the following paragraphs.

2. The taxable bases which the institutions charge to the partners, shall be treated by them in the financial year which they are responsible for, as a permanent difference in the calculation of the expenditure incurred by tax on profits, except on the part of the tax base which at the time of the imputation is provided for, or is to be distributed as a dividend in the short term or is likely to revert in the short term by the disposal of the units, reflecting in such cases as a temporary difference.

3. Notwithstanding the foregoing, the partners may, where appropriate, reflect the tax base charged by the institution as a temporary difference in a uniform manner so that an option is retained in time and in respect of the different entities in which they may participate.

4. The current tax assets (withholding, split payments, income on account and fees paid) charged to the partners, from the entity will be treated contably as a tax on the profit tax due in the exercise, which can be used for account 638. 'Positive adjustments in the tax on profits', with a charge on account 4732. "Public Finance, debtor with transparent entities", which will be opened within the account 473. "Public finance, withholding and payments on account".

5. Unit-holders of temporary joint ventures shall record the tax effect arising from the integration of the various assets, liabilities, revenue and expenditure of the temporary union of undertakings in accordance with the general rules contained therein. resolution, taking into account the circumstances in the temporary union of companies.

Article 11. Tax consolidation regime.

1. The expenditure incurred by tax on profits which must appear in the profit and loss account of a company, individually considered, which is taxed on a tax consolidation basis, shall be determined taking into account, in addition to the parameters to be considered in case of individual taxation, the following:

(a) The permanent and temporary differences resulting from the elimination of results derived from the process of determining the consolidated tax base.

(b) The deductions and bonuses corresponding to each company of the tax group in the group of companies; for these purposes, the deductions and bonuses shall be charged to the company which carried out the activity or obtained the necessary performance to obtain the right to the tax deduction or bonus.

2. For the calculation of income tax expense and other measures related to the tax effect of each of the companies that are taxed in the tax consolidation regime, the following rules apply:

a) Temporary differences.

If as a result of the elimination of results for the determination of the consolidated tax base, a difference in the recognition by the group of results is produced as long as they are not carried out against third parties or, where appropriate, in the valuation corrections relating to the investment in the capital of a company of the group, it shall arise for the company which has recorded such a result, or impairment of value, a difference of a temporary nature, accounting records shall be performed in accordance with the general rules, and may be used for this purpose the following accounts:

4748. Deferred tax asset by "intra-group" and other operations.

4798. Liabilities for taxable temporary differences by "intra-group" and other transactions.

b) Negative taxable bases:

1. Yes to a company in the group for tax purposes, taking into account the above, it is for the exercise of a negative tax result, equivalent to a negative tax base, and the set of companies which the group compensates all or part of it in the consolidated profit tax return, the accounting of the tax effect shall be carried out as follows:

(a) By the part of the negative tax result compensated, a reciprocal credit and debit will emerge, between the society to which it corresponds and the society that compensates it.

(b) For the part of the negative tax result not compensated by the companies in the group, the company to which it corresponds will account for a deferred tax asset if the tax group as a whole is reasonably expected to (a) to generate in future fiscal gains, in accordance with the provisions of Article 5 of this resolution. For these purposes, account 4749 can be used. Credit for losses to be offset by consolidated statement of the financial year.

2. In the case of negative taxable bases produced prior to consolidated taxation, the requirements for the accounting reflection of the tax credit derived therefrom, as set out in Article 5, shall be add that the group for tax purposes can compensate them.

3. The tax credit as a result of the loss tax compensation shall be calculated by applying the general rules contained in this resolution.

c) Deductions, bonuses, holds, and income to account:

1. The deductions and allowances of the profit tax quota shall affect the calculation of the tax due in each company for the actual amount of the tax which is applicable to the scheme of the companies and not for the amount, lower or higher, which would correspond to each company under individual taxation.

2. For the purposes of the preceding paragraph, the deductions and allowances of the quota applied in the group of companies shall be attributed to those companies which have carried out the activity or obtained the performance which originate.

3. The amounts of income tax revenue, including withholding taxes, shall be charged to the company that has actually incurred them.

4. If as a result of the above, the sum of deductions and bonuses applied to a company produces a "fee" with negative amount, the amount to be taken into account to determine the mutual credit or debit between that company and the tax group.

3. Deferred tax assets shall be the subject of an accounting record in accordance with Article 5 and provided that they can be made effective by the group of companies forming the group set up for the purposes of the fiscal consolidation of corporate tax.

4. If, as a result of the private-law relations between the companies of the tax group, the distribution of the tax burden does not coincide with that resulting from the application of this rule, the difference for each company will be treated according to the economic reality of the operation.

5. The reciprocal credits and debits as a result of the operations described in paragraph 2 (b) and (c) above, as well as those generated, where appropriate, for each company by the apportionment of the tax burden, may be accounted for, by the deadline, in the following accounts:

1638. Other long-term debts with related parties by tax effect.

2428. Long-term credit to related parties for tax purposes.

5138. Other short-term debts with related parties by tax effect.

5328. Short term loans to related parties by tax effect.

CHAPTER VI

Foreign taxes similar to corporation tax

Article 12. Foreign taxes of a similar nature to corporation tax.

1. The costs incurred by tax on profits in foreign tax systems having the same nature as the Spanish company tax, taking into account in any case the 'double taxation agreements', will be recorded as the same way as the expense accrued by corporation tax in Spain.

2. If the income obtained abroad is exempt from tax in Spain, the tax base of the property assets affected by the branch or business abroad will be the result of applying the tax legislation of the country in which it is Develop the activity.

In such a case, the positive income obtained abroad will be classified as a permanent difference for the purposes of accounting for the expense of tax on profits, and the tax credits for the generation of negative income shall be accounted for by applying the expected rate of taxation in accordance with the tax legislation of that country.

3. If the income obtained abroad is not exempt from taxation in Spain, the tax effect derived from the difference between the book value and the tax base (Spanish) of the property assets will also have to be considered such activity. In the case of negative income, only one deferred tax asset may be recognised by applying the rate of tax expected under Spanish tax law, where it is likely that the entity will meet the requirements set out in that tax. rules to ensure that the right to compensation for tax losses is incurred.

4. The accounting of profit-tax expenditure related to branches or businesses abroad, with a functional currency other than that of taxation, shall be made taking into account the differences arising from the variation of the exchange rate. Such differences shall arise because the book value of non-cash assets and liabilities is accounted for at the historical exchange rate, while its tax base shall relate to the exchange rate of closure. The tax effect of these differences shall be accounted for in the profit and loss account.

5. Where the functional currency of the foreign branch or business differs from the euro, the corresponding conversion difference, net of the tax effect, must be recognised.

6. For the record of the profit tax expense to be entered in the profit and loss account, or directly in the net worth, account 635 may be used, respectively. Tax on foreign profits and 832. Tax on foreign profits, differentiating between current and deferred tax, whose movement will be similar to that provided for in the General Accounting Plan for account 630 and 830, making the necessary breakdowns in the accounts of counterpart.

CHAPTER VII

Consolidated Annual Accounts

Article 13. Temporary differences in consolidation.

1. The accounting reflection of the consolidated corporate tax shall be made by considering as temporary differences existing between the value in consolidated accounts of an item and its tax base.

2. Therefore, if the consolidation changes or incorporates securities, the amount of such temporary differences may be affected. This could happen mainly as a result of the homogenizations and elimination of results, of the capital gains and losses due to the application of the acquisition method, the recognition of the consolidation trade fund, and in the case of that the value in consolidated accounts attributable to participation in a dependent, multi-group or associated company is different from its value in individual accounts.

Article 14. Homogenization, elimination of results and incorporation of capital gains and disabilities by the application of the acquisition method.

1. The tax effect of temporary differences arising from homogenizations, elimination of results and adjustments to the fair value of the assets and liabilities identifiable by application of the acquisition method shall be accounted for with the general criteria laid down in this resolution. Therefore, only deferred tax assets will be recognised in so far as the existence of tax profits that allow the application of these assets is likely.

2. The homogenizations and eliminations of the results of the consolidation shall result in temporary differences if they result in an adjustment in the value of an asset or liability without a similar correction for tax purposes. In that case, deferred tax assets or liabilities that have not been recognised in the individual annual accounts shall arise.

3. The homogenizations and eliminations of the results of the consolidation may also require the cancellation, in whole or in part, of an asset or liability for deferred tax recognised in individual annual accounts, if the adjustment reduces or overrides a the difference between the book value and the tax base of a patrimonial element, which will occur, inter alia, when the companies are taxed on a consolidated basis.

4. Similarly, the elimination of the valuation of the investment in the group's companies may give rise, in the light of the tax treatment of the operation and the system of taxation chosen, to the recognition of a tax liability. deferred or the elimination of the deferred tax asset which, if any, would have been recognised in the individual annual accounts of the dominant company.

5. For the valuation of deferred tax assets and liabilities, the tax rate of the company that has accounted for that result in its accounts shall be used for the temporary differences resulting from the elimination of the results. individual annual accounts, that is, the one for the internal transferring company.

6. The consolidation of companies with a functional currency other than that of taxation shall be undertaken taking into account the differences arising from the variation of the exchange rate. Such differences shall arise because the book value of non-cash assets and liabilities is accounted for at the historical exchange rate, while its tax base shall relate to the exchange rate of closure. The tax effect of these differences must be incorporated by means of homogenisation adjustments in the event that it has not been collected in the individual annual accounts.

7. Adjustments to the fair value of the identifiable assets acquired and liabilities assumed as a result of the initial application of the acquisition method may result in temporary differences, which, if they are to be recognised, affect the initial value of the consolidation trade fund, or the negative consolidation difference, as appropriate.

Article 15. Consolidation Trading Fund.

1. In the initial recognition, the accounting value of the consolidation trade fund shall be higher than the tax base, where a part, or its entirety, is not deductible. In this case, the deferred tax liability associated with that difference shall not be recognised.

However, deferred tax liabilities related to a goodwill shall be recorded as long as they have not arisen from their initial recognition.

2. If, in the initial recognition of the goodwill, its book value is lower than its tax base, the corresponding deferred tax asset shall be recognised in so far as it is likely to obtain future tax gains that allow for its application. Such recognition shall be performed as part of the initial accounting of the acquisition, thereby affecting the initial value of the goodwill.

3. The tax effect that may arise from the negative consolidation difference shall be treated in accordance with the general rules for the registration of temporary differences.

Article 16. Differences between the consolidated value of an investee and its tax base.

1. The difference between the tax base of a holding in a dependent, multi-group or associated company and its consolidated book value shall be a temporary difference in consolidated accounts where it can give rise to taxable amounts or Deductibles by enseiling such investment or reversing the temporary difference by loss or impairment.

For these purposes, it shall be considered as consolidated book value:

(a) In the case of holdings in subsidiaries consolidated by global integration: the value of the assets and liabilities of the dependent company recognised in the consolidated balance sheet, deduced from the participation of partners external.

(b) In the case of consolidated companies by proportional integration: the net value of the assets and liabilities of the consolidated entity recognised in the consolidated balance sheet.

(c) In the case of consolidated companies by way of equivalence: the balance of the account where such participation is collected.

2. The difference between the consolidated book value of a holding and its tax base will mainly arise as a result of the joint effect resulting from:

a) The existence of accumulated results generated from the date of acquisition by the investee,

b) Tax deductions associated with investment, and

c) The conversion difference.

Such differences shall be offset as the accounting value and the tax base converge, which shall, among other cases, take place by the distribution of dividends, the sale of the share, accumulated losses of the investee, or the reversal of the conversion difference balance.

3. These differences will be assessed in accordance with the general criteria set out in this Resolution, i.e. they will be accounted for by the amount expected to be paid or recovered from the tax authority, taking into account the tax consequences that are would derive from the way the company expects to recover those investments.

4. The temporary differences regulated in this article shall not be recognised in the following cases:

a) In the case of taxable differences, if the investor can control the timing of the difference reversal and in addition it is likely that such a difference will not be reversed for the foreseeable future.

(b) In the case of deductible differences, it is expected that such a difference will not be reversed for the foreseeable future or that the company will not be likely to have sufficient future tax revenues.

5. Previous deferred tax assets and liabilities shall be recognised using the item or items that correspond to their origin, whether they are losses and gains, reserves, value adjustments, conversion differences or other items.

Article 17. Subsequent recognition of acquired tax assets.

Except where the accounting error rate rule applies, if at the acquisition date no deferred tax assets of the acquired company were recognised separately for failing to meet the criteria of recognition, and subsequently the recognition of such assets, shall be performed as follows:

(a) The deferred tax assets acquired that are recognised within the initial valuation period of the business combination, and which come from new information on facts and circumstances that existed on the date of the acquisition, will reduce the carrying amount of any goodwill related to that acquisition. If the book amount of that goodwill is null, any deferred tax assets that remain must be recognized in the item "Negative difference in business combinations".

(b) Deferred tax assets that are recognised after the said valuation period, or within the valuation period but which bring about facts or circumstances that did not exist at the date of acquisition, shall not give rise to place for adjustments in the book amount of the goodwill or the negative difference, and shall be recognised in profit or loss, or if the rule so requires, directly in equity.

CHAPTER VIII

Benefits and contingencies arising from the benefit tax

Article 18. Provisions and contingencies arising from the profit tax.

1. As a general rule, the obligations of a fiscal nature, whether or not they arise from an inspection report, shall result in the exercise of the recognition of a provision for the estimated amount of the tax liability.

2. The provision referred to in the preceding number or, where appropriate, in the case of certain amounts, the debt to the Public Finance, shall be recorded in respect of the concepts of expenditure corresponding to the various components which the integrate.

This provision shall be included in item 4. 'Other provisions' under the heading I 'Long-term provisions' of pool B) 'Non-current liabilities' of the balance sheet or in a heading of pool C) Current liabilities under heading II 'Short-term provisions' if the maturity of this provision is less than one year; where applicable, the debt referred to in paragraph 1 shall be less than one year and shall be included in item 6. 'Other debts to the general government' under the heading C. V 'Commercial creditors and other accounts payable' on the liabilities side of the balance sheet, whereas if the debt to the public treasury has a maturity of more than one year, it shall be included in the item 'long-term public administration' shall be created for the purpose under item B. II 'Long term debt' of the liability.

3. The recording of the operations referred to in the previous paragraph shall be carried out with reference to the profit and loss account models contained in the third part of the General Accounting Plan, as follows:

(a) The corporate tax share of the financial year shall be counted as an expense in item 17 "Profit tax". Account 633 may be used for this purpose. "Negative Adjustments to the Tax on Benefits" contained in Part Four of the General Accounting Plan.

(b) Interest in the current financial year shall be counted as a financial expense, which shall be included in the item "Financial expenses" of the profit and loss account.

(c) The interest and the fees for all previous financial years shall be accounted for by a charge in a reserve account when the provision has been recorded in a previous financial year, not would have been produced. On the contrary, if the recognition or adjustments in the amount of the provision are made by way of change of estimation (consequence of obtaining additional information, greater experience or knowledge of new facts), it will be charged accounts in sub-group 63 for the amount corresponding to the quota and to the accounts of subgroup 66 for interest on late payment, corresponding to the year or previous financial year.

d) The penalty will produce an expense of exceptional nature, which will be accounted for by account 678. "Exceptional expenses".

4. The excesses which can be made manifest in the provision to which reference has been made, shall entail a charge on the same subject to the concepts of revenue which correspond; in particular, the excesses arising in connection with the concept of Corporate tax expense, which will be a reduction in the profit and loss account "profit tax", for which account 638 may be used. 'Positive adjustments to profit-making'; on the other hand, excesses arising in relation to the concept of interest for the financial year or earlier financial years shall result in a payment in the accounts of the sub-group 76; (a) any excess which can be made manifest in relation to the concept of a penalty shall be included in the item 'Exceptional income'.

CHAPTER IX

Simplified Criteria

Article 19. Companies in which all "temporary" differences are "temporary".

1. Where all temporary differences at the beginning and close of the financial year have been caused by temporary differences between the tax base and the accounting result before tax, the deferred tax expense (income) may be assessed directly by the algebraic sum of the following quantities, each with the corresponding sign:

(a) The amounts resulting from the application of the appropriate rate of charge to the amount of each of the differences indicated, recognised or applied in the financial year, and the negative taxable bases to be offset in financial years subsequent, recognized or applied in the exercise;

(b) the amounts of deductions and other tax advantages to be applied in subsequent years, recognised or applied in the financial year, as well as, where appropriate, the recognition and allocation to the profit and loss account; and income from income directly imputed to the net worth that may result from the accounting of those deductions and other tax advantages in the tax quota that have an economic nature equivalent to the grants;

(c) The amounts arising from any valuation of liabilities or assets by deferred tax, usually by changes in the rates or circumstances affecting subsequent disposal or recognition of such liabilities or assets.

2. Also in this particular case, the total income tax expense (income) will comprise the part relative to the current tax and the part corresponding to the deferred tax calculated in accordance with what is expressed in this case.

Article 20. Individual entrepreneur.

In the case of individual entrepreneurs, no amount should be reported under the heading corresponding to the profit tax. For these purposes, at the end of the year the supported holds and the payments of the Income Tax of the Physical Persons shall be the subject of the corresponding transfer to the account of the holder of the company.

Article 21. Simplified scheme for micro-enterprises.

The income tax expense of micro-enterprises defined as such in Article 4 of Royal Decree 1515/2007 of 16 November, approving the General Plan of Accounting for Small and Medium-sized Enterprises and the specific accounting criteria for micro-enterprises shall be accounted for in the profit and loss account for the amount resulting from the tax settlements of the corporate tax on the financial year. For this purpose, at the end of the financial year, the expenditure accounted for by the amounts due shall be increased or decreased by the amount applicable, by registering the corresponding debt or credit against the Public Finance.

CHAPTER X

Rules for drawing up annual accounts

Article 22. Rules for drawing up annual accounts.

1. An asset and a current tax liability may be presented in the balance sheet for the net amount provided the following conditions are met:

a) That the company has at that time, the legally recognized right to offset the amounts accounted for, and

b) That the company intends to liquidate the amounts by net or to perform the asset and to cancel the liability at the same time.

An entity will normally have a legally recognized right to compensate current assets for taxes with current liabilities of the same nature, when they relate to income taxes. corresponding to the same tax authority, and is allowing the entity to pay or receive a single amount to cancel the existing net situation.

In consolidated annual accounts, a current tax asset in an entity shall be offset by a current tax liability of another entity in the group if, and only if, the corresponding entities are recognised legally the right to pay or receive a single amount that cancels the net situation, in the event that such entities intend to make or receive such net payment or to recover the asset and to pay, simultaneously, the liability.

2. Both the expense or income from current tax and deferred tax will be entered into the profit and loss account. However, in the following cases the current and deferred tax assets and liabilities shall have as their counterpart the following:

(a) If they relate to a transaction or event that has been directly recognised in a net worth item, it shall be recognised as a charge or a credit to that item.

(b) If they have arisen because of a business combination, they shall be recognised as the other assets of the acquired business, unless they constitute assets or liabilities of the acquirer, in which case their recognition or It will not be part of the business combination. Current tax expenditure which is apparent as a result of the cancellation of the prior participation in the acquired company shall be entered in the profit and loss account.

3. Where the amendment of the tax legislation or the evolution of the economic situation of the undertaking has led to a change in the amount of the deferred tax liabilities and assets, such adjustments shall constitute an income or expenditure, as applicable, by deferred tax, in the profit and loss account, except to the extent that they relate to items that were previously charged or paid directly to equity, in which case they shall be directly imputed in this.

4. The note for the memory 'Tax situation' of the individual annual accounts shall contain an explanation of the difference between the net amount of the revenue and expenditure of the financial year and the tax base (tax result). This shall include the following reconciliation, taking into account that any differences between those measures which are not identified as temporary according to the registration and valuation rule shall be classified as differences. permanent.

Reconciliation of the net income and expense of the year with the taxable income tax base

	Profit and Loss Account		Revenue and expenses directly imputed to the net worth		Reservations		Total
revenue and expense
	Augments (A)	Decreases (D)	(A)	(D)	(A)	(D)
Tax.
Differences.
differences: with source in the exercise. with source in previous exercises.
Compensation for negative taxable bases from previous exercises.

Also, a numerical explanation and reconciliation should be included between the income tax expense/income and the result of multiplying the applicable tax rates to the total income and expenses recognized, differentiating the balance from the profit and loss account.

In addition, the following information must be indicated:

a) Breakdown of income tax or income tax income, differentiating current tax and deferred tax variation, which is attributed to the profit and loss account result (distinguishing the for continued operations and discontinued operations if any and provided that the undertaking is required to report separately from the results of the discontinued operations), as well as the directly imputed to the assets net, differentiating the one that affects each item of the state of changes in net worth.

(b) In relation to deferred taxes, this difference must be broken down, distinguishing between assets (temporary differences, credit for negative taxable bases and other claims) and liabilities (temporary differences).

(c) Where, in accordance with the exceptions provided for in this resolution, the deferred tax liabilities resulting from taxable temporary differences are not recognised, the existence of such liabilities and the amount of the tax shall be reported. those non-recognised liabilities.

(d) The amount and time of application of deductible temporary differences, negative tax bases and other tax credits, where the corresponding deferred tax asset has not been recorded in the balance sheet.

e) The amount of deferred tax assets, indicating the nature of the evidence used for their recognition, including, where applicable, tax planning, when the performance of the asset depends on future earnings higher than those corresponding to the reversal of the taxable temporary differences, or where the company has experienced a loss, either in the current financial year or in the previous year, in the country with which the tax asset relates deferred. In particular, in cases where the company considers that there is evidence to refute the presumption that it is not possible to recover the deferred tax assets within a period of more than ten years, it should be reported in detail. the circumstances in which that judgment is supported.

(f) Where deferred tax on a deferred tax, tax losses to compensate or deductions or other unused advantages arising from a previous financial year and have not been the subject of a tax The following shall be reported on the basis of the circumstances in which the same flowering is based on those in existence at the time when the assets in the balance sheet were not recorded. Similarly, when credit for deductions and other tax benefits had been recorded as a result of an operation and its effective application was conditional on the performance of a given activity, it should be included in the memory this information.

(g) Nature, amount and commitments acquired in relation to tax incentives applied during the financial year, such as benefits, deductions and certain permanent differences, as well as those to be deducted. In particular, it shall be reported on tax incentives which are the subject of a period of time, indicating the amount charged to the financial year and the amount remaining to be charged. This information shall contain the criteria used for the period of time, both in the year in which the permanent difference occurs or the deductions and other tax advantages are applied, as in the subsequent financial years until the end of the period. the timing. In this way, the memory shall be reported on any circumstances of a substantive nature in relation to the expected performance of this rule.

h) Further information on the tax payable to the various tax jurisdictions will be reported, detailing the withholding and payments made.

i) The remaining permanent differences will be identified by pointing to their amount and nature.

j) All estimates and calculations used for the determination of the expected average rate of charge shall be reported, justifying changes and variations between current values and estimated future values. Similarly, where the use of the last available average rate of charge is chosen in accordance with the principle of relative importance, the reasons which have led to the choice of such an option must be justified, however, all future events considered may affect the valuation of deferred tax assets and liabilities.

k) Changes in the applicable tax rates compared to those of the previous year. The effect on deferred taxes recorded in previous years shall be indicated.

(l) Information relating to provisions arising from the tax on profits as well as on tax contingencies and on post-closure events involving an amendment to the tax rules which affects the registered tax assets and liabilities. In particular, the exercises to be checked shall be reported.

m) Entities applying any of the special schemes established by the tax law shall provide information on the scheme concerned, indicating when the conditions for applying it have been met; where applicable, where they are no longer complied with, including the effects on the financial statements of the said situation. In particular, where entities are dealt with in any of the special schemes based on the allocation of income, information on the allocation to the partners of taxable bases, deductions and allowances in the quota, deductions, broken payments, income on account, the share of the payment, as well as any fees that would have been charged to those entities.

n) For the case of entities that are taxed in the tax consolidation regime, each company in the tax group must include in the memory, in addition to the indications that are obtained in accordance with the resolution, any relevant circumstance on this special tax regime, indicating in particular:

1. º Permanent and temporary differences arising out of this special arrangement, indicating for the temporaries the exercise in which they originate as well as the reversion produced in each exercise.

2. ° Compensation of negative taxable bases resulting from the application of the corporate group scheme.

3. The breakdown of the most significant credits and debits between companies in the group as a result of the tax effect generated by the group of companies.

o) Companies subject to taxation abroad must report on foreign taxes on the benefit of the company, indicating under the applicable tax regime how many circumstances affect the the annual accounts of the company, using the same information scheme provided for the Spanish company tax.

p) Any other substantive circumstances in relation to the tax situation.

5. The note of the 'Tax situation' memory of the consolidated annual accounts shall contain the information referred to in the preceding paragraph, taking into account that the references to the undertaking or entity from the perspective of the accounts Consolidated annual accounts must be understood as the reporting entity.

In particular, the following information will be incorporated:

(a) The explanatory table of the difference between the net amount of the revenue and expenditure for the financial year and the taxable amount, adjusted to the following model:

Reconciliation of the net income and expense of the year with the taxable income tax base

	Profit and Loss Account		Revenue and expenses directly imputed to net worth		Reservations		Total
					colspan="2">
	Augments (A)	Decreases (D)	(A)	(D)	(A)	(D)
Corporate Tax
Permanent Differences: -of the individual societies.
Temporary Differences: -of the individual societies: with source in the exercise. with source in previous exercises.
-of the consolidation settings:. with source in the exercise. with source in previous exercises.
Compensation for negative taxable bases from previous exercises

b) Explanation and numerical reconciliation between income tax expense/income and the result of multiplying the applicable tax rates to the total income and expenses recognized, differentiating the balance of the profit and loss account.

(c) The identification of the companies of the group that are taxed in the tax consolidation regime.

(d) The amount of temporary differences taxable by investments in subsidiaries, associates and joint ventures where the corresponding deferred tax liability has not been recorded in consolidated balance sheet the provisions of Article 16 (4) of this resolution.

Single repeal provision. Regulatory repeal.

The Resolution of 9 October 1997, of the Institute of Accounts and Audit of Accounts, is repealed, on some aspects of the standard of assessment sixteenth of the General Plan of Accounting.

Single end disposition. Entry into force.

This resolution shall enter into force on the day following that of its publication in the "Official Gazette of the State" and shall apply to the annual accounts of the financial years started on or after 1 January 2015.

Madrid, February 9, 2016. -President of the Accounting and Audit Institute, Ana María Martínez-Pina García.