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Practical Income Manual 2023.

f) Information to be provided in the personal income tax return

The maximum period to materialize the reserve for investments in the Balearic Islands (RIB) is three years, by virtue of the provisions of the seventieth Additional Provision. Four of Law 31/2022, of December 23, on the General State Budgets for the year 2023.

This period of three years must be counted from the date of accrual of the tax corresponding to the year in which the provision (accounting) of the reserve occurs and said provision in the case of natural persons can be:

  • at the close of the accounting year on December 31 of each year.
  • in the year following that of obtaining the benefit.

The above determines that natural persons will have an effective period to materialize the reserve for investments in the Balearic Islands of three or four years, depending on when they have made the accounting entry of the reserve provision (at the end of the year or in the following exercise). The design of the IRPF model responds to this duality (which does not happen in the case of Companies).

The information on allocations and materializations made in 2023 of the reserve for investments in the Balearic Islands corresponding to the year 2023 and anticipated investments of future allocations will be provided in accordance with the breakdown contained in the corresponding heading of Annex A.4 of the declaration of the following shape:

Provisions and materializations made in 2023

  • Box [1937]

    Y and will indicate the amount of the allocation for the reserve for Investments in the Balearic Islands made in 2023.

  • Box [1938]

    The year in which the provision is made will be indicated.

  • Box [1939]

    The amount of the materializations made with charge to the previously declared endowment in the investments provided for in letters A and B of number 4 of section four of the seventieth Additional Provision will be indicated. Law 31/2022, of December 23, on General State Budgets for the year 2023.

  • Box [1940]

    The amount of the materializations made with charge to the previously declared endowment in the investments provided for in letter C of number 4 of section four of the seventieth Additional Provision will be indicated. Law 31/2022, of December 23, on General State Budgets for the year 2023.

  • Box [1941]

    The amount of the previously declared provision that is pending materialization as of December 31, 2023 will be indicated.

Anticipated investments of future allocations to the reserve for Investments in the Balearic Islands, made in 2023

The amount of the investments will be indicated in the boxes [1942] and [1942] , respectively. carried out in 2023 as an early materialization of future provisions in those provided, on the one hand, in letters A and B and, on the other, in letter C, of ​​number 4 of section four of the seventieth Additional Provision. Law 31/2022, of December 23, on General State Budgets for the year 2023.