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V0351-22 24 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Taxation of pharmacy sales: economic activity income vs capital gains depending on assets

A taxpayer queried the tax treatment regarding the sale of a pharmacy business and payments made to participants in a joint venture agreement (cuentas en participación). The DGT ruled that the sale of stock constitutes income from economic activities, whereas the sale of fixed assets is treated as a capital gain. Furthermore, payments to participants are classified as income from movable capital.

The question raised

Tax treatment of said sale in Personal Income Tax, as well as the payment that the taxpayer must make to the non-managing participants.

The DGT's ruling

The transfer of inventory generates income from economic activity integrated into the general base. The transfer of fixed assets (tangible or intangible) generates a capital gain or loss calculated as the difference between the transfer value and the book value, integrated into the savings base. Payments to non-managing participants in a joint account contract are considered income from movable capital. The amount paid to the participants does not affect the calculation of capital gains or losses from the sale of the business.

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