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V0278-22 15 February 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · documentos mercantiles

Nominative cheques without 'to order' clause or endorsement are not subject to tax on documented legal acts

A query was raised regarding whether the issuance and collection of cheques to access funds from a joint account is subject to ITPAJD. The DGT ruled that if the cheque does not include an 'to order' clause and is not intended for endorsement, the taxable event does not occur.

The question raised

Whether the issuance and collection of cheques are subject to the Transfer Tax and Documented Legal Acts Tax.

The DGT's ruling

For a document to fulfill the function of a transfer and be subject to the tax, it must prove the remittance of funds or be an order or endorsable cheque. In the case presented, as it does not contain the 'to order' clause nor is there an intention to endorse, it is not subject to the ITPAJD. However, if an endorsement were to occur, the cheque would become subject to taxation under documented legal acts.

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