Integration and compensation of income in the taxable savings base
Regulations: Art. 49, Additional Provision thirty-ninth.1; and seventh transitional provision.5 LawPIT
The integration and compensation of income in the taxable savings base is carried out, in a similar way to that discussed in the previous section, in two phases: The first is intended to determine the taxable base of the savings obtained in the tax period itself, and the second is to offset the negative items from previous years that are pending offset against the positive balance, if any, obtained.
Phase 1. Integration and compensation of income obtained in the tax period
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The returns on movable capital that make up the taxable savings base (those derived from participation in the equity of entities, from the transfer of equity to third parties, from capitalization operations, from life or disability insurance contracts and income resulting from the imposition of capital) are integrated and offset exclusively among themselves in each tax period , resulting in a positive or negative balance.
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The positive balance resulting from said compensation is integrated into the taxable savings base, without prejudice to the compensation discussed below.
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The negative balance is offset by the positive balance of capital gains and losses arising from the transfer of assets that are part of the taxable savings base, obtained in the same tax period, with a limit of 25 percent of said positive balance .
If after such compensation there is a negative balance, its amount will be compensated in the following four years in the same order established in the previous paragraphs.
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Capital gains and losses arising from the transfer of assets , regardless of their period of permanence, are integrated and offset exclusively among themselves in each tax period, resulting in a positive or negative balance.
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The positive balance resulting from said compensation is integrated into the taxable savings base, without prejudice to the compensation regime discussed below.
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The negative balance will be offset against the positive balance of the capital gains included in the savings tax base, obtained in the same tax period, with a limit of 25% of said positive balance .
If after said compensation there is a negative balance, its amount will be compensated in the following four years in the same order established in the previous paragraphs.
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The above offsets must be made in the maximum amount permitted in each of the following years and may not be made outside the aforementioned period by accumulating them with negative income from subsequent years.
Phase 2. Offsetting negative items outstanding from previous years
Negative items from previous years pending compensation
Negative items from previous years pending offset as of January 1, 2025 may be:
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Negative balances of income from movable capital from 2021, 2022, 2023 and 2024 pending compensation as of January 1, 2025, to be integrated into the savings tax base.
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Negative balances of capital gains and losses from 2021, 2022, 2023 and 2024, pending compensation as of January 1, 2025, to be included in the savings tax base
Rules for offsetting negative items from previous years
The above negative balances are offset in the order and manner set out below:
1. Offsetting the negative items pending from previous years with their respective positive balance of income or profits and losses for the year
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The positive balance of income from movable capital for the 2025 financial year, once this balance has been reduced by the compensation of capital losses corresponding to the 2025 financial year, will be offset by the taxpayer with the balance of negative income from movable capital pending compensation from the 2021, 2022, 2023 and 2024 financial years.
With regard to the latter, it should be noted that it includes all negative returns on movable capital pending compensation for the years 2021, 2022, 2023 and 2024, including those derived from subordinated debt or preferred shares.
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The positive balance of gains and losses for the 2025 financial year, once this balance has been reduced by the compensation of any negative balance of investment income obtained in the 2025 financial year, will be offset by the taxpayer with the balance of losses pending compensation from the 2021, 2022, 2023 and 2024 financial years.
With regard to the latter, it should be noted that it includes all capital losses pending compensation from the years 2021, 2022, 2023 and 2024, including those derived from subordinated debt or preferred shares.
In no case will compensation be made outside the four-year period, by accumulating negative net balances or capital losses from subsequent years.
Note: Annex “C” in the declaration model includes, in relation to the integration and compensation of income, information relating to losses and negative capital gains pending compensation in the following years.
2. Offsetting of the remaining negative balances of capital gains and outstanding gains and losses from previous years not offset
If there were negative balances of income from movable capital for the years 2021, 2022, 2023 and 2024, which have not been offset as indicated above, will be offset with the remaining positive balance, if any, of capital gains for the 2025 financial year up to the limit of 25 percent of the aforementioned positive balance.
This compensation together with that of the negative balances of investment income from 2025 may not jointly exceed the limit of 25 percent of the positive balance of gains and losses from 2025.
The same will happen if there are negative balances of capital gains and losses from the financial years 2021, 2022, 2023 and 2024that have not been offset, in which case, they will be offset with the remaining positive balance, if any, of income from movable capital for the year 2025, up to the limit of 25 percent of the aforementioned positive balance.
This compensation together with the compensation of negative balances of gains and losses from 2025 that are offset against the positive balance of investment income from 2025 may not jointly exceed the limit of 25 percent of the positive balance of investment income from 2025 before compensation.
The operations of integration and compensation of income in the taxable base of savings that have been discussed are collected, graphically, in the following table: