Whispering Ltd in a Spanish company that provides the following…
Question Answered step-by-step Whispering Ltd in a Spanish company that provides the following… Whispering Ltd in a Spanish company that provides the following information regarding Corporate Income Tax of fiscal year 2020:a) In 2018 the company purchased a truck for 20.000 €. In 2020 the accounting depreciation amounted to 5.000 €, although the maximum percentage admitted in the CIT law is 20%.b) In 2019 the company invested in Research & Development machinery that was freely depreciated for fiscal purposes at that moment, as it qualified for it. The acquisition cost was 50.000 €, being 15% the maximum admitted accounting depreciation percentage.c) The company has registered a bad debt provision for a 3.000 € credit, enforceable since September 10th 2020, from a client located in Madrid.d) The company has registered a bad debt provision from Madrid City Hall, enforceable since the 3rd of May 2020, warranted by a mortgage on Real Estate.e) The company has registered as financial income 2.500 € of dividends distributed by another Spanish company, being the participation in the company a 30% of the capital since 2016.f) The 1st of June 2020 the company has charged 10.000 € for services, with the following calendar of payments: 1. 1. 1st of June 2020: 3.000€ 2. 31st of December 2020: 3.000€ 3. 1st of July 2021: 2.000€ 4. 1st of December 2021: 2.000€1. 3000/10000 = 30% , 3000*30% = 900 2. 3000/10000 = 30% , 3000*30% = 900 3. 2000/10000 = 20%, 2000*20% = 400 4. 2000/10000 = 20%, 2000*20% = 400Please explain the possible fiscal adjustments to be done when reporting 2020 Corporate Income Tax profit. Explain your reasons. Law Social Science Tax law LEGAL 133 Share QuestionEmailCopy link Comments (0)
