General tax base


The general tax base is one of the tax bases that are used to quantify the personal income tax (Personal Income Tax), that is, it is an amount that will serve to know about what amount the tax that is owed is going to be calculated. to pay.

The general tax base is used to determine not only the amount that will be the base for personal income tax but also to know if the taxpayer has access to some deductions.

This general tax base is formed by the sum of the income and income imputations that we will see below and by the positive balance obtained from the compensation between capital gains and losses that do not derive from the transfer of assets, such as, for example, the subsidies and aid designed for the acquisition of the habitual residence, a prize from a contest or a new television.

Therefore, the general tax base is formed by the sum of these two blocks during a tax year:

The fact of remarking that the positive balance of the result of subtracting capital gains and losses is added is very important, why?

Because if the result is negative in this operation, the amount will be compensated with the positive balance that has been given by adding the returns and the income imputations with a limit of 25% of that positive balance.

If after offsetting the negative amounts there is still an amount to be offset, it will be offset with the positive balances of the next 4 tax periods.

What are returns?

Now we are going to study what the yields are:

  1. Work income: These are the compensation derived from an employment relationship or personal work. For example, wages or unemployment benefits.
  2. Income from real estate capital: These are the considerations derived from equity elements. For example, the rental of an apartment owned by the taxpayer.
  3. Income from movable capital: These are those considerations derived from bank account interests, bonds, obligations and stock dividends, for example.
  4. Income from Economic Activities: Those considerations derived from business, professional, artistic or sports activities that meet these requirements:
    1. That the taxpayer assumes the risk of the activity.
    2. That the taxpayer order on his own means of production or human resources.

What are income imputations?

Now we will see what are the imputations of income.

  1. Imputations of real estate income: They are fictitious income that is imposed on the taxpayer who owns a real estate. For example, if the taxpayer has a second home (even if it is not rented).
  2. International Tax Transparency Regime: Special tax regime that is applied to avoid tax avoidance.
  3. Assignment of Image Rights: Those compensation that they would have received for assigning the right to exploit their image.
  4. Collective investment institutions established in tax havens: The difference between the value of the participation on the closing day of the tax period and its acquisition value of the participation that the taxpayer has in a collective investment institution in some tax haven.

General tax base example

Now we are going to see a numerical example to understand how the general tax base would be calculated:

Taxpayer A has:

  • Work income: 10,000
  • Income from the activity: 5,000
  • Return on real estate capital: 5,000
  • Return on movable capital: 1,000
  • Imputations of real estate income: 20,000
  • Capital losses: -5,000

To calculate the general tax base, we first add the income and the income imputations:

10.000 + 5.000 + 5.000 + 1.000 + 20.000 =41.000€

Then we calculate the capital losses which are: -5,000 €

General tax base = 41,000 + (-5,000) = € 36,000

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