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Practical Income Manual 2021.

Classification according to its origin or source

Regulations: Art. 25 Law Personal Income Tax

Taking into account the assets from which they come, income from movable capital is classified, for the purposes of Personal Income Tax , into the following four groups:

  1. Income obtained from participation in the own funds of any type of entity.

  2. Income obtained from the transfer of own capital to third parties.

  3. Income from capitalization operations and life or disability insurance contracts , except when they must be taxed as income from work, and from income derived from the taxation of capital.

    However, benefits derived from insurance contracts concluded within the framework of social security are taxed as income from work . The following have this consideration:

    • Insurance contracts concluded with social security mutual societies whose contributions may have been, at least in part, a deductible expense or subject to a reduction in the tax base.
    • Corporate social security plans and collective insurance that implement pension commitments assumed by companies, in the terms provided for in the first Additional Provision of the consolidated text of the Law on the Regulation of Pension Plans and Funds, approved by Royal Legislative Decree 1/ 2002, of November 29 ( BOE of December 13).
    • Insured pension plans.
    • Dependency insurance in accordance with the provisions of Law 39/2006, of December 14, on the Promotion of Personal Autonomy and Care for People in a Situation of Dependency (BOE of 15).

  4. Other income from movable capital.