Phase 2. Compensation of negative items pending from previous years

The negative net balances of capital gains and losses not derived from transfers of assets corresponding to the years 2016, 2017, 2018 and 2019, pending offsetting as of January 1, 2020, are offset in the manner provided for the offsetting of the negative balance of capital gains and losses indicated above, that is:

• Firstly, with the positive net balance of capital gains and losses obtained in the 2020 financial year itself, up to the maximum amount of said balance .
• Secondly and lastly, with the positive balance of the returns and income imputations, once said balance has been reduced by the offset of the negative balance, if any, of capital gains and losses obtained in the year.

The offsetting of negative balances of capital gains and losses for the financial year and previous financial years pending offsetting, may not jointly exceed the limit of 25% of the positive balance of the income and income imputations before said offsets.