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V0146-20 ·21 January 2020 ·consulta-vinculante Medium impact
Tax

Cooperative members must self-assess ITP on capital reductions upon withdrawal

A cooperative member inquired whether the refund of their capital contributions upon leaving the entity is exempt from Transfer Tax (ITP). The Directorate General for Taxes (DGT) ruled that the transaction is subject to the tax and that the member is the person liable for payment.

In 6 key points

How it affects those involved

This ruling clarifies that capital reductions resulting from a member's withdrawal from a cooperative are taxable events, placing the tax liability directly on the individual member.

Lifecycle

2020-01-21PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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