What are negative taxable bases (BINs)?
In a nutshell, Bins refer to losses generated in previous exercises that have not yet been compensated.
These losses can be used to reduce the tax base in the following fiscal periods, which allows companies to reduce their fixed loadscal in later years. This mechanism is essential for companies that have faced economic difficulties and seek to recover their financial position.
However, The compensation of these negative tax bases is subject to certain limitations and conditions. In this article, We will break down these key aspects and how the recent jurisprudence has influenced its treatment.
Quantitative limitations in Bins compensation
Although Bins can be compensated in future exercises, There are certain quantitative limitations that must be taken into account:
- Compensation limit: The amount of the Bins cannot exceed the amount of the positive income determined for the same tax period.
- Maximum limit: A maximum limit is established with respect to the tax base before applying the capitalization reserve. This limit cannot exceed one million euros, And compensation adjusts according to the company's business figure:
- Inferior a 20 Millions of euros: 70% of compensation.
- Of 20 millions at least 60 Millions of euros: 50% of compensation.
- 60 Millions of euros or more: 25% of compensation.
- Exceptions: This limit does not apply to newly created entities that benefit from a type of tax 15% In the first three tax periods in which a positive tax base is generated before its compensation, nor to the entities in the process of extinction.
RIGHT OF THE ADMINISTRATION AND REVIEW OF THE BIS
The Tax Administration has the right to initiate a procedure for verifying the BINS within a period of 10 years since the end of the deadline to submit the declaration or self -assessment corresponding to the tax period in which the negative tax base was generated. This ensures that the bins are correctly verified and compensated.
Change in the interpretation of the Bins compensation
Until recently, The Tax Agency dealt with the compensation of the BINS as a tax option, that is to say, The taxpayer should choose to compensate for losses at the time of submitting the declaration. If this option was not exercised, It was not possible to request the rectification later.
However, This interpretation has changed significantly with the judgment of the National Court No. 3998/2020 y, More recently, With the Supreme Court Judgment 1404/2020. These resolutions establish that the compensation of Bins in the Corporation Tax has a double dimension:
- Taxpayer's right: It is configured as a true right that the taxpayer can exercise or give up, No interpretive restrictions.
- Constitutional principle of economic capacity: Bins compensation is aligned with the constitutional principle of economic capacity, that seeks fair taxation based on the real economic capacity of the taxpayer.
Implications for taxpayers
Thanks to jurisprudence, Taxpayers have the right to compensate for the negative tax bases with the positive income of future tax periods, Even if the statement is presented in an extemporaneous way.
This decision reinforces the idea that Bins compensation is not a tax option, sino an autonomous right that cannot be limited by restrictive interpretations.
If you have doubts about how to manage your bins or how the recent jurisprudence can affect you, We recommend consulting with a fiscal advisor from Vázquez and Machón to make sure you meet the obligations and maximize your fiscal benefits.
