Skip to main content
Form 100. Personal Income Tax Declaration 2019

7.2.2. Full income from movable capital

All profits or considerations, whatever their name or nature, whether monetary or in kind, that come, directly or indirectly, from assets, assets or rights, of a movable nature, the ownership of which will be considered full capital returns. corresponds to the taxpayer and are not affected by economic activities carried out by him.

The Tax Law provides that in no case will the assets representing the participation in the own funds of an entity and the transfer of capital to third parties be considered as affected elements (art. 29.1.c) Law).

However, the income derived from the transfer of ownership of the assets, even when there is a retention of title agreement, will be taxed as capital gains or losses, unless they are expressly classified as capital gains, as is the case of the transmission of assets representative of the collection and use of foreign capital (obligations, bonds, bills, promissory notes, etc.).

The consideration obtained by the taxpayer for the postponement or fractionation of the price of the operations carried out in the development of their usual economic activity will not be considered a return on movable capital, without prejudice to its taxation for the corresponding concept (art. 25.5 Law). ).

Returns in kind

If the income from movable capital is received in kind, the market value of the goods or services received must be computed as full income. The payment on account will be added to this value, unless its amount has been passed on to the recipient of the income (art 43.2 Law).

Estimated income (art.40 Law)

The benefits of goods or rights capable of generating returns on capital will be presumed to be remunerated, unless proven otherwise (art. 6.5 Law).

The valuation of the estimated income will be carried out at the normal market value. Normal market value will be understood as the consideration that would be agreed upon by independent parties, unless proven otherwise.

If these are loans and operations to raise or use foreign capital in general, the normal market value will be understood to be the legal interest rate on money that is in force on the last day of the tax period.

The legal interest rate on money established for the year 2019 is 3 percent.

Related operations (art. 41 Law)

In general, in the Personal Income Tax, the rules for valuing related-party transactions are applied in the terms provided in the Corporate Tax Law.