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V0229-22 9 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · hecho imponible

Withdrawing and redepositing cash into a bank account does not constitute a taxable event for Personal Income Tax

A query was raised regarding whether withdrawing and subsequently redepositing cash into a bank account has tax implications. The DGT ruled that these operations do not constitute the acquisition of income, although the taxpayer must be able to prove the origin of the funds.

The question raised

The tax treatment, under Personal Income Tax (IRPF), of the withdrawal and the re-deposit into an account of said money is consulted.

The DGT's ruling

The mere withdrawal and subsequent deposit of cash into a bank account is not included in the scenarios that determine the acquisition of income subject to taxation. Nevertheless, the taxpayer must prove the origin of the deposited money through the means of evidence admitted under Law. The re-deposit of money into an account is not a matter of a tax nature and there is no rule establishing a time limit in this regard.

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