Treatment of capital gains or losses derived from elements affected by the exercise of economic activities

Regulations: Art. 28.2 Personal Income Tax Law

In order to equalize the tax treatment applicable to capital gains or losses derived from all assets or rights owned by the taxpayer, the Income Tax Law establishes in its article 28.2 as a general principle that capital gains or losses derived from elements related to economic activities are not included in the net income of the same, but are taxed as such together with rest of the capital gains or losses.

See in this regard within Chapter 11 dedicated to "Capital gains and losses" of this manual the specific valuation rules that are discussed in relation to the " Assets allocated or disassociated less than three years in advance ".