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V2714-15 21 September 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deducción por creación de empleo

Unused tax deductions may be applied in subsequent tax years without rectifying the original tax return

A company inquired whether applying an unused 2013 tax deduction for hiring disabled workers required rectifying that year's tax return or notifying the Tax Agency. The Directorate General of Taxes (DGT) ruled that such deductions can be applied directly in subsequent tax years without rectification, provided their origin is properly justified.

The question raised

Whether, in order to apply the deduction in the 2014 tax return or subsequent years, it is necessary to request the rectification of the 2013 tax return or to inform the Tax Agency by means of a written statement of the existence of said right, or whether it could be applied directly in form 200 for the 2014 fiscal year as a deduction pending from the 2013 fiscal year despite not having reported it in the 2013 tax return.

The DGT's ruling

Amounts of deductions not deducted in a period may be applied in the tax returns of the 15 immediate and successive years. It is not necessary to request the rectification of the tax return for the fiscal year in which the right was generated, and they may be applied in subsequent fiscal years provided that their origin and amount are justified pursuant to Article 105 of the General Tax Law.

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