8.3.1. General tax base

The general tax base will be the result of adding the following balances:

1. The balance resulting from integrating and offsetting, without any limitation, in each tax period, the following returns and income imputations:

   • Performance: (positive or negative balance)

     • Work performance

     • Real Estate Capital Returns

     • Income from Personal Capital of art. 25.4 of the Law

     • Income from capital assets from related entities

     • Income from Economic Activities

   • Income imputations:

     • Imputed Real Estate Income

     • International Tax Transparency Regime

     • Assignment of Image Rights

     • Collective Investment Institutions established in Tax Havens

     • Charges against Economic Interest Groups and Temporary Business Associations

   The resulting positive balance will be integrated into the general tax base.

   The negative balance must be offset against the positive balance of capital gains and losses obtained, where applicable, in the same period. If after such compensation there is still a negative balance, it will be integrated with such sign in the general tax base.

2. The positive balance resulting from integrating and offsetting, exclusively among themselves, in each tax period, the capital gains and losses that do not derive from the transfer of assets.

   These gains and losses are integrated and offset exclusively against each other. If the result of the compensation is positive, the balance is integrated into the general tax base.

   However, if the result of the compensation shows a negative balance, its amount will be offset against the positive balance of the "income and income imputations" of section A) above, with a limit of 25% of said positive balance.

   If after said compensation there is a negative balance, its amount will be compensated in the maximum amount allowed in the following four years in the same order established in the previous paragraphs. In no case will this compensation be made outside the four-year period, by accumulating capital losses from subsequent years.

Income from movable capital derived from the transfer to third parties of own capital that forms part of the general tax base (Art. 46 Law)

Income from movable capital derived from the transfer to third parties of equity from related entities will only form part of general income to the extent that they correspond to the excess of the amount of equity transferred to the related entity over the result of multiplying by three the taxpayer's participation in the entity.

For the purposes of calculating this excess, the amount of the equity of the related entity reflected in the balance sheet corresponding to the last fiscal year closed prior to the date of accrual of the Tax and the percentage of participation of the taxpayer existing on this date will be taken into consideration.

In cases where the link is not defined based on the relationship between partners or participants-entity, the percentage of participation to be considered will be 25 percent.