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Practical Income Manual 2020.

Not derived from transfers of assets

Regulations: Art. 34.1.b) Law Personal Income Tax

In cases other than onerous or lucrative transfer, the amount of the capital gain or loss will be the market value of the assets or proportional parts , where applicable.

The incorporation of assets or rights to the taxpayer's assets that do not derive from a prior transfer must be included within this category of capital gains, such as, for example, the receipt of certain subsidies or aid for the acquisition or rehabilitation of the habitual residence, aid from the State in concept of basic emancipation income, those derived from the forestry exploitation of the neighbors in public forests, the interests of a compensatory nature originated by the delay in the fulfillment of an obligation, including that of the payment of salaries, as well as the prizes obtained for participation in games, contests, raffles or random combinations.

In the case of subsidies, the amount of said profit will be the monetary amount of the subsidy.

In relation to the awards, it is worth distinguishing:

  • Cash prizes . These prizes are subject to withholding, so the amount countable as capital gain will consist of the entire prize without deducting the withholding borne, which will be declared as such in the section of the declaration corresponding to withholdings and other payments on account.
  • Prizes in kind. These prizes are subject to deposit on account, so the total computable amount will be composed of the sum of the valuation of the prize received, which will be made at its market value, plus the deposit on account, unless the latter had been passed on to the taxpayer.

Note: The refund, in cash or through other compensation measures, of the amounts previously paid to financial entities as interest for the application of clauses will not be integrated into the tax base of Tax of limitation of interest rates on loans (the so-called floor clause), along with their corresponding compensatory interests, derived both from agreements entered into with financial entities and from compliance with judgments or arbitration awards.