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V0115-22 24 January 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gains tax on business donations if requirements of Art. 20.6 ISD Law are met

A taxpayer over 65 donated their agricultural business to their children and inquired whether the Personal Income Tax (IRPF) exemption could be applied. The Directorate General for Taxes (DGT) ruled that no capital gain or loss will arise if the requirements of Article 20.6 of the Inheritance and Gift Tax Law are satisfied.

The question raised

Whether the provisions of Article 33.3.c) of the Personal Income Tax Law are applicable to the donation.

The DGT's ruling

The non-existence of capital gains or losses is estimated in the gratuitous transfers of companies or holdings that meet the requirements of paragraph 6 of Article 20 of Law 29/1987. This application is independent of whether the donee applies or does not apply the reduction to the taxable base. Likewise, the requirements established by regional regulations are irrelevant for this purpose.

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