The obligation to declare the application of the special tax regime for carried interest (DA 53rd Personal Income Tax Law) has been established in the informative Form 190 of withholdings on account of Personal Income Tax.
Prior to the 2025 financial year, Form 190 did not include a specific section for the purpose of declaring such income. However, following the approval and entry into force of Order HAC/1431/2025, of 3 December, Order EHA/3012/2008, of 20 October, approving Form 190, has been amended, establishing the obligation to communicate in said form those cases in which the special tax regime of carried interest is applied to income from work paid to employees of the entity. That is, the obligation only reaches the carried interest paid to the employees, leaving out the carried interest paid to directors, who are deprived of a legal regime in this regard.
In particular, as indicated in the Order, in order to identify the cases in which this tax benefit has been applied, a new field has been created in form 190 that allows you to know if the payer has paid workers remuneration that, at least partially, has benefited from said tax regime.
In Form 190, identification is made in the "Additional Data" tab of the "Recipient" section. Specifically, in this tab, the aforementioned new field has been created, of a numerical nature, in position 389, under the title: "Income from work obtained from the management of funds linked to entrepreneurship, innovation and the development of economic activity".
In this field, a “1” must be entered, when the earned income paid includes, even partially, income to which the special tax regime of carried interest has been applied; or a “0”, in all other cases – that is, when the income from work paid does not include income to which the special tax regime of carried interest has been applied.
This obligation is applicable to Form 190 for the years 2025 and following, with respect to the carry paid to employees in those years.
