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A taxi driver enquired whether the sale of his auto-taxi licences qualifies for the reduction under the seventh additional provision of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) ruled that the benefit applies if the transfer is due to retirement, but not if the transfer occurs after the individual has already retired and continued the activity.
Taxpayers who transfer taxi licences as part of their retirement process may benefit from a reduction in capital gains tax, provided the transfer is directly linked to the cessation of activity due to retirement.
The tax team reviews your specific situation.
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