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V0093-21 27 January 2021 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · junta de compensación

Formation of a Compensation Board is not subject to transfer tax or Stamp Duty if it lacks economic content

A query was raised regarding whether the deed of formation of a Compensation Board is subject to Transfer Tax (ITP) and Stamp Duty (AJD). The DGT ruled that no transfer of assets occurs and that, regarding Stamp Duty, non-liability depends on whether the deed contains economic value or is registrable in the relevant registries.

The question raised

Whether the referred operation is subject to the Onerous Asset Transfers modality of the Tax on Property Transfers and Documented Legal Acts, given that in the deed of establishment of the Board, no transfer of ownership occurs.

The DGT's ruling

The establishment of a Compensation Board does not constitute a taxable event for the transfer tax modality of onerous asset transfers. Regarding the Documented Legal Acts modality, non-liability for the variable fee depends on whether the deed has as its object a quantifiable amount or thing and whether it is registrable in the registries provided for by law. If the deed determines the value of the estates and must be submitted to the Property Registry, it could be subject to tax.

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