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Form 100. 2019 Personal Income Tax return

7.2.4. Return on movable capital to be included in the general tax base

Other income from movable capital (Article 25,4 of the Act)

Full income

This heading includes any other return on movable capital not included in the previous sections and, among others, the following earnings, monetary or in kind:

  1. Those from intellectual property when the taxpayer is not the author and those from industrial property that is not affected by economic activities carried out by the taxpayer.

  2. Those from the provision of technical assistance, unless such provision takes place in the field of economic activity.

  3. Those from the lease of movable property, business or mines, as well as those from the sublease received by the sub-lessor, which do not constitute economic activities.

  4. Those from the transfer of the right to use the image or consent or authorization for its use, unless such transfer takes place in the field of economic activity.

  5. The returns derived from loans granted by the taxpayer.

The remaining capital gains that must be included in the general tax base will also be included in this section. Such as, for example, the amount of the yields derived from the transfer of capital from third parties from entities linked to the taxpayer that these correspond to the excess of the amount of capital transferred to the entity with respect to the result of multiplying own funds by 3 in the part corresponding to the taxpayer's participation in the latter.

Withholdings

In this section, the withholdings made or payments on account made on accrued income will also be indicated, amounts that the program transfers to box 0597 of page 22 of the tax return.

Interest on financial assets with the right to a bonus (Transitional Provision 6 of the Corporate Tax Act) exclusively when they come from entities linked to the taxpayer. The actual withholdings and deductible withholding will be indicated in the corresponding sections.

The amount of the withholdings not actually applied that, however, are considered deductible from the payment will be transferred by the program to box 0591 of page 17 of the tax return.

Tax deductible expenses (article 26.1.b) Act)

Exclusively in the event of income derived from the provision of technical assistance, the leasing of movable property, business or mines or sub-leases, all the expenses necessary to obtain them will be deductible from full income and, where applicable, the amount of the impairment suffered by the assets or rights of the income.

For these purposes, the same rules will be applied for the deductible expenses of the returns on real estate. The limit established for interest and other financing expenses and repair and conservation expenses will not apply.

In the case of returns derived from the transfer of capital from entities linked to the taxpayer to third parties, the administrative expenses and the deposit of marketable securities may be deducted, where applicable.

Reductions (Article 26,2 of the Act)

As a general rule, net returns will be calculated in full, unless the reduction of 30 per 100 in the case of irregular returns is applicable.

Note: The reduction should normally be entered without a sign. However, when the reduction affects a negative net return, it will be entered preceded by the minus sign (-).