9.6.2.1. Completion

You will complete section A) if, as stated above, you can apply the deduction to all of the income obtained.

Otherwise, you will complete section B) or C) depending on whether they are individual or joint declarations, recording the following information.

• Income included in the general tax base

  The amount of income obtained on the island of La Palma included in the general tax base will be entered in this box.

  The following will be included as income obtained on the island of La Palma:

  • The net (reduced) returns from work, capital (which should not be included in the tax base of savings) and economic activities.

  • The income that comes from the ownership of real estate located on the island of La Palma.

  • The net balance of capital gains and losses attributable to the current year that do not derive from the transfer of assets.

  Negative items originating on the island of La Palma

  If the net balance of capital gains and losses that do not arise from a transfer is negative, only the amount that has been integrated into the tax base for the year will be taken into account, without including, where applicable, the part pending compensation in years. successive. If said negative balance does not correspond entirely to income obtained on the island of La Palma, the part pending compensation will be distributed proportionally.

  Likewise, to calculate the income obtained on the island of La Palma included in the general tax base, the negative items from previous years originating on the island of La Palma that have been offset in the current year in the general tax base must be subtracted.

  To calculate this deduction, the program does not consider the assumption that negative taxable bases from previous years will be offset.

• Income included in the savings tax base

  The amount of income obtained on the island of La Palma included in the tax base of savings will be entered in this box.

  Included in the savings tax base:

  • The positive net balance of capital gains and losses attributable to the current year that derive from the transfer of assets.

  • The positive net balance of capital gains included in the savings tax base.

  Negative items originating on the island of La Palma

  To calculate the income obtained on the island of La Palma included in the tax base of savings, the negative items from previous years originating on the island of La Palma that have been offset in the current year must be subtracted. If said negative balance does not correspond entirely to income obtained on the island of La Palma, the part pending compensation will be distributed proportionally.

• Joint income tax return

  For the program to calculate the deduction in this type of taxation, it must include the sum of the income obtained on the island of La Palma by all members of the family unit.

  In general, the amount of income obtained on the island of La Palma with the right to deduction will be the sum of the amount of those that give rise to this same right in the individual declarations of the declarant and the spouse.

  However, in some cases, the option for the type of taxation may cause variations in the amount of deductible expenses with a maximum limit, and the reductions applicable to net work income.