Example: Income from the transfer of own capital to third parties
Don MLH, single, has obtained the following income during 2020:
- On January 10, he receives 400 euros in interest on a deposit for eight years and one day (imposition date January 9, 2012; tax capital 20,000 euros).
- On May 26, it subscribes to five-year "M, SA" obligations for an effective amount of 10,800 euros, with annual payment of the coupon (on May 25). On October 3, it transmits half of the obligations for 5,800 euros, bearing transmission costs of 30 euros. "M, SA" is listed on the Stock Exchange and the obligations are represented by book entries.
On October 30, he receives 5,000 euros in annual interest from "Z, SA" of which he is the sole administrator and majority partner, for the loan that, on October 29, 2016 and for the amount of 70,000 euros, he made to the same. This loan will be fully repaid on October 30, 2020. The amount of interest corresponds to the market value.
In the balance sheet for fiscal year 2019, closed on July 31, 2020, "Z, SA" had own funds worth 50,000 euros and the percentage of taxpayer participation as of December 31 was 40 percent.
- On December 12, it sold 100 obligations of "T, SA" for 7,210 euros, discounting the expenses inherent to said transfer paid by the transferor. These obligations were acquired in March 2013 for 7,815 euros. On December 28, he bought 100 bonds from the same company again for 8,414 euros.
- On December 18, he received 210 euros in interest on subsidized obligations of a toll highway concession company to which the 95 percent bonus on Capital Income Tax is applicable. The withholding actually borne amounts to 2.52 euros.
- On December 28, it transmits State obligations for an effective amount of 30,050 euros. These obligations were acquired for an amount equivalent to 27,600 euros, including the expenses inherent to said acquisition.
Determine the net return on the movable capital to be included in the tax base of Personal Income Tax and the deductible withholdings, assuming that the financial institution has debited 41 euros for administration and securities deposit expenses. negotiable.
1. Deposit interest for eight years and one day
2. Transmission of obligations "M, SA"
2. Loan interest to related entity
(1) When proceeding with the income from a loan made to an entity linked to the taxpayer, the interest corresponding to the excess of the amount of own capital transferred to the related entity (70,000 euros) with respect to the result of multiplying by three must be included in the general tax base. the own funds in the part that corresponds to the taxpayer's participation, of the latter [40% (50,000 x 3) = 60,000]. The amount of the excess, which amounts to 10,000 euros (70,000 – 60,000), represents 14.29 percent of the loan, so the interest that must be included in the general tax base will be the result of applying this percentage to the total of the interest received (5,000 x 14.29% = 714.50). (Back)
(2) The rest of the interest (5,000 – 714.50 = 4,285.50) will be integrated into the liquidated base of the savings. Since there are no deductible expenses in the income to be included in the general tax base, the full amount coincides with the net amount. (Back)
(3) The withholding rate applicable in 2020 to income from the transfer of own capital to third parties is 19%. (Back)
4. Transfer of obligations "T, SA"
(4) Having acquired bonds from the same company within a period of two months, the negative return obtained cannot be computed until the bond is sold.(Back)
5. Interest on subsidized debentures
(5) In addition to the withholdings actually borne (2.52 euros), the taxpayer can deduct from the tax the withholdings not actually made but which are entitled to the 95% bonus. Given that the applicable tax rate on interest in the repealed Capital Income Tax was 24 percent and the applicable bonus is 95 percent, the deductible withholdings not made amount to = (22.8% s/210 ) = 47.88 euros. This rate is the result of applying the 95% bonus to 24% (24% x 95%) = 22.8%. (Back)
6. Transmission of State Obligations
7. Total full income to be included in the tax base of savings (400 + 370 + 4,285.50 + 210 + 2,450) = 7,715.50
8. Total full and net income to be included in the general tax base = 714.50