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Form 100. 2020 Personal Income Tax Return Declaration

8.3.4. Offsetting negative items in the savings tax base

Negative items from previous years pending compensation as of January 1, 2020 may be:

  • Negative balances of capital gains from 2016, 2017, 2018 and 2019, pending compensation as of January 1, 2020, to be included in the taxable savings base.
  • Negative balances of capital gains and losses from 2016, 2017, 2018 and 2019, pending offset as of January 1, 2020, to be included in the taxable savings base.

1Offsetting of pending negative items from previous years with their respective positive balance of income or profits and losses for the year

  • The positive balance of capital gains for the year 2020, once said balance has been reduced by the offset of capital losses corresponding to the year 2020, may be offset by the taxpayer with the balance of negative capital gains pending offset from the years 2016, 2017, 2018 and 2019.

  • The positive balance of profits and losses for the 2020 financial year, once said balance has been reduced by the offset of the negative balance, if any, of capital gains obtained in the 2020 financial year, may be offset by the taxpayer with the balance of the Losses pending offset from the 2016, 2017, 2018 and 2019 financial years.

In no case will compensation be made outside the four-year period, by accumulating negative net balances or capital losses from subsequent years.

2. Offsetting of the remaining negative balances of capital gains and outstanding gains and losses from previous years not offset

  • If there are negative balances of capital gains from the years 2016, 2017, 2018 and 2019 that have not been offset as indicated above, they may be offset against the remaining positive balance, if any, of capital gains from the year 2020 up to the limit of 25% of the aforementioned positive balance.

    This offset, together with the offset of negative balances of capital gains for 2020, may not jointly exceed the limit of 25% of the positive balance of profits and losses for 2020.

  • If there are negative balances of capital gains and losses from the years 2016, 2017, 2018 and 2019 that have not been offset, in which case, they may be offset against the remaining positive balance, if any, of income from movable capital from the year 2020, up to the limit of 25% of the aforementioned positive balance.

    This offset, together with the offset of the negative balances of profits and losses for 2020 that are offset against the positive balance of capital gains for 2020, may not jointly exceed the limit of 25% of the positive balance of capital gains for 2020 before offsets.