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V0306-21 19 February 2021 · 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 income for Personal Income Tax (IRPF)

A taxpayer inquired whether withdrawing cash for personal custody and subsequently redepositing it has tax implications. The DGT ruled that these movements do not constitute income, although it warned that 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 pursuant to Article 6 of the Personal Income Tax Law (LIRPF). However, the DGT cannot qualify the tax consequences if the origin of the money were different, therefore the interested party must prove the origin of the funds deposited.

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