Skip to main content
Practical manual for Income Tax 2020.

Phase 1. Integration and compensation of income obtained in the tax period

  1. The returns on movable capital that make up the taxable savings base (those derived from participation in the equity of entities, from the transfer of equity to third parties, from capitalization operations, from life or disability insurance contracts and income resulting from the imposition of capital) are integrated and offset exclusively among themselves in each tax period , resulting in a positive or negative balance.

    • The positive balance resulting from said compensation is integrated into the taxable savings base, without prejudice to the compensation discussed below.
    • The negative balance is offset by the positive balance of capital gains and losses arising from the transfer of assets that are part of the taxable savings base, obtained in the same tax period, with a limit of 25% of said positive balance.

    If after such compensation there is a negative balance, its amount will be compensated in the following four years in the same order established in the previous paragraphs.

  2. Capital gains and losses arising from the transfer of assets , regardless of their period of permanence, are integrated and offset exclusively among themselves in each tax period, resulting in a positive or negative balance.

    • The positive balance resulting from said compensation is integrated into the taxable savings base, without prejudice to the compensation regime discussed below.
    • The negative balance will be offset against the positive balance of the income from movable capital included in the taxable savings base, obtained in the same tax period, with a limit of 25% of said positive balance.

    If after such compensation there is a negative balance, its amount will be compensated in the following four years in the same order established in the previous paragraphs.

The above offsets must be made in the maximum amount permitted in each of the following years and may not be made outside the aforementioned period by accumulating negative income from subsequent years.