Classification of income according to its origin and source and classification for the purposes of calculating the tax

Regulations: Art. 6.2 Law Income Tax

The income obtained by the taxpayer throughout the tax period is ordered according to its origin or source, in three tax categories:

This classification has its effects especially in the quantification of income. Thus:

Net income is obtained by the difference between computable income and deductible expenses, without prejudice to the application of reductions on the gross or net income that may apply.
Income imputations are quantified by directly applying the criteria and rules established by law.
Capital gains and losses are generally determined by the difference between the transfer and acquisition values.

However, for the purposes of calculating the tax, the income obtained by the taxpayer in the tax period is classified into the following two groups:

1 General income

Regulations: Articles 44 and 45 Law IRPF

This group includes the following components of the taxpayer's income:

Income from work, real estate capital, personal capital (exclusively those provided for in section 4 of article 25 of the Personal Income Tax Law . That is, among others, those derived from intellectual property, the provision of technical assistance, the leasing of movable property, businesses or mines or subleases and the transfer of the right to exploit the image) and those derived from the exercise of economic activities.
Imputations of real estate income, international tax transparency, transfer of image rights, collective investment institutions established in tax havens, Spanish and European economic interest groups, and temporary business associations.
Capital gains and losses that do not arise from the transfer of assets.

Regulations: Articles 44 and 46 Law IRPF

Savings income is made up of the following components:

Income from movable capital provided for in sections 1, 2 and 3 of article 25 of the Personal Income Tax Law . That is, those derived from the participation of equity of any type of entity, those obtained by the transfer of equity to third parties, those from capitalization operations and life or disability insurance contracts, as well as income derived from the imposition of capital.

However, the income from movable capital provided for in article 25.2 of the Personal Income Law will be part of income, corresponding to the excess of the amount of equity transferred to a related entity over the result of multiplying by three the equity, in the part corresponding to the taxpayer's participation, of the latter. Chapter 5 contains an example detailing the operations necessary to determine the portion of the income that must be included in the general tax base.

Please note that in cases where the link is defined based on the relationship of the partners or participants with the entity, the participation must be equal to or greater than 25%.
Capital gains and losses that arise on the occasion of transfers of assets, regardless of the period of generation.

The following tables graphically show the components of general income and savings income.