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Practical Income Manual 2020.

Income integration and compensation rules

Regulations: Art. 47 Personal Income Tax Law

As a prior step to calculating the tax, the positive and negative amounts of the taxpayer's income must be integrated and compensated.

The integration and compensation of income is carried out within each of the groups in which they are classified: general income and savings income, in accordance with the rules and principles discussed below, without any integration and compensation being possible between the income that makes up each of said groups.

As a result of the application of the income integration and compensation rules, the general tax base and the savings tax base are obtained, respectively.

  1. Integration and compensation of income in the general tax base
  2. Integration and compensation of income in the tax base of savings