Phase 2. Compensation of negative items pending from previous years

Negative items from previous years pending compensation

Negative items from previous years pending compensation as of January 1, 2020 can be:

1. Negative balances of capital gains from 2016, 2017, 2018 and 2019, pending compensation as of January 1, 2020, to be integrated into the savings tax base.
2. Negative balances of capital gains and losses from 2016, 2017, 2018 and 2019, pending compensation as of January 1, 2020, to be integrated into the savings tax base

Rules for offsetting negative items from previous years

Previous negative balances are offset following the order and in the manner set out below:

1.  Compensation of the negative items pending from previous years with their respective positive balance of returns or profits and losses for the year

1. The positive balance of capital gains for fiscal year 2020, once said balance has been reduced by the compensation of capital losses corresponding to fiscal year 2020, will be offset by the taxpayer with the balance of negative capital gains pending compensation for fiscal years 2016. , 2017, 2018 and 2019.

   In relation to the latter, you must take into account that it includes all negative returns on movable capital pending compensation for the years 2015, 2016, 2017 and 2018, including those derived from subordinated debt or preferred shares, since such income is not The special compensation rule of the thirty-ninth Additional Provision of the Personal Income Tax Law applies, but the general compensation rule of article 49 of the Personal Income Tax Law applies. ##2##.

2. The positive balance of profits and losses for fiscal year 2020, once said balance has been reduced by the compensation of the negative balance, if any, of capital gains obtained in fiscal year 2020, will be offset by the taxpayer with the balance of the pending losses. compensation for the years 2016, 2017, 2018 and 2019.

   In relation to the latter, you must take into account that it includes all capital losses pending compensation for the years 2016, 2017, 2018 and 2019, including those derived from subordinated debt or preferred shares, since the special compensation rule of the thirty-ninth Additional Provision of the Personal Income Tax Law , but the general compensation rule of article 49 of the Personal Income Tax Law .

In no case will compensation be made outside the four-year period, by accumulating negative net balances or capital losses from subsequent years.

Note: Annex “C” in the declaration model includes, in relation to the integration and compensation of income, the information related to losses and negative returns on capital assets pending compensation in subsequent years.

2. Compensation of the rest of the negative balances of capital gains and outstanding profits and losses from previous years not offset

If there are negative balances of capital gains from the years 2016, 2017, 2018 and 2019 that have not been offset as indicated above, they will be offset with the remaining positive balance, if any, of capital gains from the year 2020 up to the limit. of 25 percent of the aforementioned positive balance.

This compensation, together with that of the negative balances of movable capital returns from 2020, may not jointly exceed the limit of 25 percent of the positive balance of profits and losses for 2020.

The same will happen if there are negative balances of capital gains and losses for the years 2016, 2017, 2018 and 2019 that have not been offset, in which case, they will be offset with the remaining positive balance, if any, of income from the capital stock of the fiscal year 2020, up to the limit of 25 percent of the aforementioned positive balance.

This compensation, together with that of the negative balances of profits and losses of 2020 that are offset by the positive balance of movable capital returns of 2020, may not jointly exceed the limit of 25 percent of the positive balance of movable capital returns of 2020 before of compensations.