Positive and negative delimitation

Positive delimitation

Regulations: Art. 21 Law Personal Income Tax

profits or considerations, whatever their denomination or nature, whether monetary or in kind, that come, directly or indirectly, from the capital and, in general, of goods or rights not classified as real estate, of which the taxpayer is the owner and are not affected by economic activities carried out by him.

The income corresponding to the patrimonial elements, assets or rights, which are exclusively assigned to economic activities carried out by the taxpayer, will be included among those derived from the indicated activities.

Important : in case are assets representing the participation in the funds of an entity and the transfer of capital to third parties [Art. 29.1 c) Law Personal Income Tax ].

Negative delimitation

The following are not considered income from movable capital:

• Derivatives from the delivery of released shares.

  Regulations: Articles 25.1 b) and 37.1 a) and b) Law Personal Income Tax

  The tax treatment of the receipt of bonus shares both in the case of securities admitted to trading and securities not admitted to trading is discussed in Chapter eleven.

  Attention : from January 1, 2017, the amount obtained from the transfer of subscription rights from securities, both admitted and non-admitted rights ##2##trading in an organized market is considered a capital gain subject to withholding. See Chapter 11.

• The dividends and shares in profits distributed by companies that come from tax periods during which said companies were under a tax transparency regime

  Normative: Art. 91.9 and transitional provision tenth Law Personal Income Tax ; fourth transitional provision IRPf Regulation

• The consideration obtained for the deferral or splitting of the price of the operations carried out in the development of a habitual economic activity of the taxpayer

  Regulations: Art. 25.5 Law Personal Income Tax

• Those derived from the lucrative transfers, due to the death of the taxpayer, of the assets representing the raising and use of other people's capital. Nor will the return on movable capital negative derived from the lucrative transfer of assets representative of the raising and use of foreign capital by "inter vivos" acts be computed ##2##

  Regulations: Art. 25.6 Law Personal Income Tax

• The dividends and shares in profits referred to in article 25.1 a) and b) Law Personal Income Tax that come from profits obtained in tax periods during which the entity that distributes them would have been taxed under the corporate regime

  Regulations: Transitional provision tenth Law Personal Income Tax

• The distribution of the benefits referred to in article 25.1 a) and b) Law Personal Income Tax obtained by civil companies that had kept accounting in accordance with the commercial code in the years 2014 and 2015 and that became be considered taxpayers of Corporate Tax as of January 1, 2016, during the tax periods in which the income attribution regime would have been applicable, they will not be integrated into the tax base of the recipient who is a taxpayer of IRPF , nor will they be subject to withholding and deposit on account.

  Regulations: Transitional provision thirty-second.3 of the LIS