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Practical manual for Income Tax 2019.

Investment income

The attributable net income will be determined by the difference between the gross income and the deductible expenses referred to in article 26.1 of the Income Tax Law

In no case may the attribution regime entity apply the 30% reduction contemplated in article 26.2 of the Income Tax Law to the net income provided for in section 4 of article 25 of the aforementioned Law that have a generation period more than two years or are classified by regulation as having been obtained in a notoriously irregular manner over time when, in both cases, they are imputed in a single tax period and the amount of net income to which the reduction is applied does not exceed 300,000 euros per year.

The members of the entity under the income attribution regime who are taxpayers under the IRPF will be able to apply this reduction in their declaration.

Depending on the nature of the attributed capital gains, the taxpayer must include it in his/her tax return as follows:

  1. In the general tax base the expected returns in section 4 of article 25 of the Personal Income Tax Law under the name "other returns on movable capital, as well as those derived from the transfer to third parties of own capital referred to in section 2 of the aforementioned article 25 that come from entities linked to it.

  2. In the taxable savings base the returns provided for in sections 1, 2, and 3 of article 25 of the Personal Income Tax Law (returns obtained from participation in the equity of any type of entity; returns obtained from the transfer of own capital to third parties; income from capitalisation operations and life or disability insurance contracts and income from capital taxation). The commentary on these returns to be integrated into the savings base is contained in Chapter 5.