Determination of the general taxable base

Regulations: Art. 50.1 and 3 Law Personal Income Tax

The general taxable base is the result of reducing the general taxable base by the amount of the reductions discussed so far in this Chapter. The reductions are applied to reduce the general tax base, in the order in which they have been discussed, without this being negative as a consequence of such reductions.

Negative general taxable base

The general taxable base can be negative when the general taxable base is negative because its negative components are greater than the positive ones. In these cases, none of the reductions discussed so far may be applied.

If the general taxable base is negative in the terms previously mentioned, its amount must be offset with the positive general taxable bases obtained in the four following years .

The compensation must be carried out in the maximum amount allowed by each of the following years and without being able to be carried out outside the period referred to in the previous paragraph, through the accumulation of negative general liquidable bases from subsequent years.

Note: the amounts of the negative general taxable bases for the years 2015 to 2018 pending compensation at the beginning of the year, those applied in the declaration and the remainder pending application in future years, as well as the amount of the negative general taxable base for 2019 that remains pending to be offset in the following 4 years, must be recorded in Annex C.3 of the declaration in the section "General negative taxable bases pending to be offset in the following years".

Compensation rules in joint taxation

The negative general taxable bases determined in joint taxation will be offset exclusively, in the case of subsequent individual taxation, by those taxpayers to whom they correspond in accordance with the rules on individualization of income contained in the Tax Law.