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V0888-21 14 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · base liquidable general

Mandatory offsetting of positive general taxable bases with negative bases from previous years up to the maximum permitted amount

A taxpayer inquired whether they could refrain from using negative bases from previous years to offset a positive base in 2020, in order to reserve them for later use. The Directorate General for Taxes (DGT) ruled that offsetting must be carried out up to the maximum amount permitted in each tax year.

The question raised

Question posed: Whether it is possible not to offset the amount of said positive general taxable base resulting from the 2020 Personal Income Tax return against the negative general taxable bases of previous fiscal years, without losing the right to offset them in subsequent fiscal years, always within the four-year limit established by Article 50 of the LIRPF.

The DGT's ruling

Pursuant to Article 50 of the Personal Income Tax Law (LIRPF), if the general taxable base is negative, its amount may be offset against the positive bases of the following four years. The offset must be carried out in the maximum amount permitted by each of the subsequent fiscal years. Therefore, in the fiscal year with a positive base, the maximum possible amount must be offset.

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