Offsetting positive and negative returns from bank promotions

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the tax treatment of economic incentives offered by banking entities. The inquiry addresses the situation of taxpayers who receive a promotion and subsequently must return the amount due to failure to comply with the agreed conditions.

What the DGT has ruled

The body establishes that the amount initially received from the promotion constitutes a positive return on movable capital. On the other hand, the refund of said amount for failing to meet the established requirements is classified as a negative return on movable capital.

Since both events occur within the same tax period, the regulations allow for them to be offset. The resulting net return will be the difference between the income and the refund. In cases where both amounts coincide, the final return is zero. Likewise, the DGT confirms that the withholding tax applied by the entity on the initial income is deductible as a payment on account in the Personal Income Tax (IRPF) return.

What this means for you

This ruling directly affects individuals participating in bank incentive campaigns. If you have received an economic benefit and had to repay it within the same tax year, you do not have to pay tax on the total initial income as if it were a definitive gain.

The ability to offset both concepts avoids an undue tax burden on money that, in practice, does not constitute a real increase in wealth since it has been returned. Furthermore, it ensures that the withholdings applied by the bank can be recovered through your income tax return.

What you should do

It is essential to keep all documentation proving both the receipt of the incentive and its subsequent refund. The traceability of these movements is necessary to justify the offsetting of returns in the IRPF return. Since every financial situation presents particularities, it is recommended to assess your specific case to ensure that the application of the regulations is correct according to your wealth situation.