Valuation of income from movable capital in kind
The recipient must compute, as total income, the result of adding to the market value of the good, right or service received the amount of the advance payment , except in cases where said advance payment has been passed on to him/her (Art. 43.2 Law Personal Income Tax ).
The payment on account must be determined by the person or entity paying this type of remuneration by applying the percentage corresponding to the result of increasing by 20% the acquisition value or cost for the payer of the good, right or service delivered (Art. 103 Personal Income Tax Regulations).
The aforementioned data must appear in the certification that, for these purposes, the paying person or entity is obliged to provide to the recipient. In short, the total income corresponding to this type of remuneration will be determined as follows:
Gross income = Market value + Unreturned income on account
Example:
On June 30, 2023, the financial institution “XX” delivers to Ms. BLH, for the imposition of 150,000 euros on a fixed term for 3 years, a computer equipment whose acquisition cost for the banking institution amounted to 1,200 euros. The computer is delivered at the time of imposition. The market value of this computer is 1,800 euros.
Determine the total income that Mrs. BLH must be entered in the declaration for this concept.
Solution:
The total taxable income from the delivery of the computer equipment will be:
Note to example:
(1) The income on account has been determined by the financial institution according to the following detail:
- Acquisition cost: 1,200.00
- 20% increase: 240,00
- Basis of income on account: 1,440.00
- Amount of the payment on account (19% s/1,440): 273.60
The rate of the advance payment applicable in 2023 to the income from the transfer of own capital to third parties is 19%. (Back)