8.3.3. Savings tax base

The taxable savings base is made up of the following components:

1. Positive balance of capital gains derived from: (art.25. 1, 2 and 3) :

   • Participation in the equity of entities

   • Transfer of own capital to third parties (except when it comes from entities linked to the taxpayer)

   • Capitalization operations

   • Life or disability insurance contracts

   • Income resulting from the imposition of capital

   If the result of the integration and compensation shows a negative balance, be offset against the positive balance of the capital gains and losses derived from the transfer of assets that make up the taxable savings base, obtained in the same tax period, with the limit of 25 percent of said positive balance.

   If after said compensation there is a negative balance, its amount will be compensated in the following four years and in the same order.

2. Positive balance of capital gains and losses arising from transfers of assets

   This group includes the positive balance of capital gains and losses that arise from transfers of assets or improvements made to them.

   These gains and losses are integrated and offset exclusively against each other, in each tax period. If the result of the compensation is positive, the balance is included in the taxable savings base. However, if the result of the compensation shows a negative balance, its amount will be offset against the positive balance of the income from movable capital that is part of the taxable savings base, obtained in the same tax period, with the limit of 25 percent of said positive balance.

   If after said compensation there is a negative balance, its amount will be compensated in the following four years and in the same order.

   The offset must be made in the maximum amount permitted in each of the following years and may not be made outside the period referred to in the previous section by accumulating it to capital losses from subsequent years.