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Practical Income Manual 2022.

Positive delimitation

Regulations: Art. 33.1 and 2 Law Personal Income Tax

In accordance with article 33.1 of the Personal Income Tax Law capital gains and losses are the variations in the value of the taxpayer's assets that become evident on the occasion of any alteration in the composition of that assets. , unless by this Law they are classified as income.

From this definition it can be concluded that, for a capital gain or loss to occur, the following requirements must be met, which are analyzed below:

  1. 1. Existence of an alteration in the composition of the taxpayer's assets
  2. 2. That as a consequence of said alteration there is a variation in the value of the taxpayer's assets.
  3. 3. That there is no legal rule that expressly exempts said gain from taxation or makes it taxable as income.