Phase 2. Compensation of negative items pending from previous years

The negative net balances of capital gains and losses not derived from transfers of assets corresponding to the years 2016, 2017, 2018 and 2019, pending compensation as of January 1 of 2020, are compensated in the manner provided for the compensation of the negative balance of capital gains and losses indicated above, that is:

• Firstly, with the positive net balance of capital gains and losses obtained in fiscal year 2020 itself, up to the maximum amount of the amount of said balance .
• 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.