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V0302-17 6 February 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · acta de notoriedad

Notoriety acts are subject to ITP if previous transfer tax payment is not proven

A taxpayer inquired whether a notoriety act is exempt from Transfer Tax (ITP) given that tax had already been paid upon the purchase of the plot. The Directorate General for Taxes (DGT) responded that the purpose of a notoriety act is to remedy the absence of a title from a previous transfer; therefore, it is subject to taxation unless proof of payment for said prior transfer is provided.

The question raised

Whether the notoriety act would be exempt from the Transfer Tax and Stamp Duty, given that the acquisition of the property has already been taxed by said tax, as is expressly stated in the referred notarial document.

The DGT's ruling

Notoriety acts are considered asset transfers subject to tax, unless it is proven that the tax or the exemption for the transfer whose title is being supplanted has been satisfied. The notoriety act does not aim at the current transfer by the applicant, but rather at the previous transfer that enabled the ownership of the person who sold to them. Therefore, tax must be paid on that previous transfer if its settlement is not proven.

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