"Please be advised that we are aware of the existence of losses pending compensation from previous years. If compensation is not possible in this year, you may confirm the draft. Otherwise, you must submit a declaration."
What does this notification entail?
In essence, the saudi arabia whatsapp number Treasury is reminding us that there are capital losses that could not be applied in previous declarations and that we now have the opportunity to offset them. These losses may have arisen from the sale of shares, funds or property made in the last four years.
When any of these assets are sold, a gain or loss is generated. If that gain or loss occurred in a period of one year or less (for example, shares purchased in February and sold in September), it will be included in the general tax base. If the gain or loss occurred in a period of more than one year (for example, shares purchased in October 2018 and sold in December 2019), it will be included in the savings tax base.
Where can we find the outstanding losses to be offset in previous statements?
These figures are reflected in boxes 446 to 450 on page 12, so information from previous years should be reviewed for amounts that can be applied now.
As for the Income Tax Return, losses pending compensation from the previous 3 years are entered in boxes 423, 424 and 425, depending on whether they are sales of assets (shares, investment funds and real estate) or income derived from savings or capital gains, regardless of whether they were generated in more than one year or less.
