Skip to main content
Practical Income Manual 2019.

Temporary allocation of income from movable capital

General rule

Regulations: Art. 14.1 a) Law Personal Income Tax

Income from movable capital, both income and expenses, must be allocated to the tax period in which they are payable by the recipient, regardless of the time in which the income was collected and the expenses were paid.

Special rules

  • Returns pending judicial resolution

    Regulations: Art. 14.2.a) Personal Income Tax Law

    When all or part of a return has not been paid because the determination of the right to its perception or its amount is pending judicial resolution (not mere non-payment), the unpaid amounts will be attributed to the tax period in which the ruling judicial becomes firm.

  • Estimated returns on movable capital

    Regulations: Art. 14.2.f) Law Personal Income Tax

    The estimated income from movable capital will be allocated to the tax period in which they are deemed to have been produced. Said period will coincide with that in which the provision of the good or right generating the return was made.

  • Income derived from the transfer of the exploitation of copyrights

    Regulations: Art. 7.3 Regulation Personal Income Tax

    In the case of income from movable capital derived from the transfer of the exploitation of copyrights that accrue over several years, the taxpayer may choose to allocate the advance payment to their account as the rights accrue. .

    Note: If the taxpayer chooses to allocate the advance payment as the copyright accrues, he/she must check the box [0049] of the declaration.

  • Negative returns derived from the transfer of financial assets

    Regulations: Art. 25.2 Law Personal Income Tax

    When the taxpayer has acquired homogeneous financial assets within the two months before or after said transfers, they will be integrated into the savings tax base as the financial assets that remain in the taxpayer's assets are transferred.

  • Benefits derived from life and disability insurance contracts

    Benefits derived from life and disability insurance contracts that generate income from movable capital will be allocated to the tax period that corresponds to the moment in which, once the contingency covered in the contract has occurred, the benefit becomes payable by the beneficiary of the insurance.