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Practical Income Manual 2021.

Qualification of attributed income and attribution criteria

Regulations: Art. 88 Law Personal Income Tax

The income obtained by the entities included in this regime that must be attributed to the partners, heirs, community members or participants will have the nature derived from the activity or source from which they come for each of them. In cases where one of the partners, community members or participants limits himself to making a capital contribution, the returns attributed to him will be in the nature of returns on movable capital as a consequence of the transfer of capital.

The income will be attributed annually to the partners, heirs, community members or participants according to the rules or agreements applicable in each case and, if these are not confirmed to the Tax Administration in a reliable manner, they will be attributed in equal parts.

In the case of communities of property, in accordance with the provisions of article 393 of the Civil Code, the distribution to the community members of both benefits and burdens will be proportional to their respective quotas. The portions corresponding to the participants in the community are presumed to be equal, until the contrary is proven.

However, in the case of communities of owners, the profits or returns will be attributed to each of the owners based on their participation coefficient in the building, as, in accordance with article 3 of Law 49/1960, of 21 of July, on Horizontal Property, this is the module to determine the participation of each owner in the burdens and benefits due to the community, unless another distribution is provided for in its statutes.