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

1. The net returns of work, real estate capital, movable capital in the terms previously mentioned and economic activities, the results of which, if any, are reduced, may be 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 unions temporary companies), whose results, if these incomes exist, must always be positive, with the exception of those derived from economic interest groups and temporary unions of companies that can allocate negative tax bases, they integrate and compensate each other without any limitation, obtaining a positive or negative total 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 by the positive balance of the capital gains and losses obtained, if applicable, in the period itself.

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

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

2. Capital gains and losses that do not arise from transfers of assets are integrated and offset exclusively among themselves, resulting in a positive balance (amount of gains greater than losses) or negative (amount of losses greater than profits).

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

The remainder not compensated will be compensated in the following four years in this order:

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

The compensation of the negative balances of capital gains and losses of the year and of previous years pending compensation, may not jointly exceed the limit of 25 percent of the positive balance of the returns and imputations of income before said compensations.

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