8.3.3. Savings tax base

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

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

   • Participation in the own funds of entities

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

   • Capitalization operations

   • Life or disability insurance contracts

   • Income that is caused by the imposition of capital

   If the result of the integration and compensation shows a negative balance, will be offset with the positive balance of the capital gains and losses derived from the transfer of assets that make up the savings tax base, obtained in the same tax period, with the limit of 25 per 100 of said positive balance.

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

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

   Included in this group is the positive balance of the capital gains and losses that arise on the occasion of transfers of assets or improvements made thereto.

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

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

   Compensation must be made in the maximum amount permitted by each of the following years and cannot be carried out outside the period referred to in the previous section by accumulating capital losses from subsequent years.