Qualification of attributed income and attribution criteria
Regulations: Art. 88 Law Income Tax
The income obtained by the entities included in this regime that must be attributed to the partners, heirs, commoners 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, commoners or participants limits themselves to making a capital contribution, the income attributed to them will have the nature of income from movable capital as a consequence of the transfer of capital.
The income will be attributed annually to the partners, heirs, commoners or participants according to the rules or agreements applicable in each case and, if these are not reliably recorded by the tax authorities, they will be attributed in equal parts.
In the case of community property, in accordance with the provisions of article 393 of the Civil Code, the distribution to the commoners of both the benefits and the burdens will be proportional to their respective shares. The portions corresponding to the participants in the community are presumed to be equal, unless proven otherwise.
However, in the case of communities of owners, the profits or returns will be attributed to each of the owners based on their coefficient of participation in the building, since, in accordance with article 3 of Law 49/1960, of July 21, on Horizontal Property, this is the module to determine the participation of each owner in the charges and benefits by reason of the community, unless another distribution is provided for in the statutes of the same.