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V0440-23 27 February 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Transfer of auto-taxi licence following active retirement is deemed a cessation of activity rather than retirement-motivated

A taxi driver inquired whether the sale of his auto-taxi licence allows for the application of the retirement reduction under the 7th Additional Provision of the Personal Income Tax Law (LIRPF). The Directorate-General for Taxes (DGT) ruled that if the transfer occurs after having carried out the activity under an active retirement scheme, the cause is the cessation of activity rather than retirement.

The question raised

Whether, when transferring the auto-taxi license, one could benefit from the reduction of capital gains provided for in the seventh additional provision of the Personal Income Tax Law.

The DGT's ruling

The reduction of capital gains from the transfer of intangible fixed assets is not applicable if the transfer is not motivated by retirement. If the holder continues to carry out the activity after retiring under the compatibility regime, the subsequent transfer of the license shall be understood to be motivated by the cessation of activity and not by retirement. In that case, the gain is subject to Personal Income Tax, unless other causes provided for in the regulation concur.

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