Phase 1. Integration and compensation of income obtained in the tax period

1. Net income from work, real estate, movable capital in the terms discussed above and from economic activities, the results of which, if applicable, may be reduced by positive or negative, and the imputations of income real estate, international tax transparency, transfer of image rights, collective investment institutions established in tax havens and economic interest groups, Spanish and European, and temporary business associations), the results of which, if these incomes exist, must always be positive, with the exception of those derived from economic interest groups and temporary business associations that may impute negative tax bases, are integrated and offset against each other without any limitation, obtaining a total positive or negative balance.

   • The resulting positive balance is integrated into the general tax base, without prejudice to the compensation discussed below.

   • The negative balance must be offset against the positive balance of capital gains and losses obtained, where applicable, in the same period.

     These capital gains and losses are those that do not arise from the transfer of assets.

     If after such compensation there is still a negative balance, it will be integrated with such sign in the general tax base.

2. Capital gains and losses that do not arise from transfers of assets are integrated and offset exclusively against each other, resulting in a positive balance (the amount of gains is greater than the amount of losses) or negative balance (the amount of losses is greater than the amount of gains).

   • The positive balance is integrated into the general tax base.
   • The negative balance must be offset against the positive balance of income and imputed income obtained in the tax period, with a maximum limit of 25 percent of said positive balance. 

The remaining uncompensated will be compensated in the next four years in this order:

• Firstly, with the positive balance of capital gains and losses of this same group that, where applicable, are obtained.
• Secondly and lastly, with the positive balance of the returns and income imputations, once said balance has been reduced by the offset of the negative balance, if any, of capital gains and losses obtained in the year.

The offsetting of negative balances of capital gains and losses for the financial year and previous financial years pending offsetting may not jointly exceed the limit of 25% of the positive balance of the income and income imputations before said offsets.

The compensation will be made in the maximum amount allowed in each of the following years and in no case will this compensation be made outside the deadline by accumulating it to capital losses from subsequent years.