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V0458-14 20 February 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · reducción por transmisión de empresa familiar

95% tax reduction on pharmacy donations denied if donor continues in management roles

A query was raised regarding whether the tax reduction for the donation of a family business remains applicable if the donor is hired as a substitute or assistant pharmacist. The Directorate General for Taxes (DGT) ruled that the reduction cannot be applied, as these roles are deemed to constitute management functions.

The question raised

Maintenance of the reduction provided in Article 20.6 of the Inheritance and Gift Tax Law in the cases of hiring the donor as an "assistant" or "substitute" pharmacist under the terms established by the Law on Pharmaceutical Care and Regulation of the Principality of Asturias.

The DGT's ruling

To apply the reduction provided in Article 20.6 of Law 29/1987, the donor performing management functions must cease to perform and receive them from the date of the transfer. In a pharmacy, a substitute or assistant pharmacist who assumes functions and responsibilities participates in the exercise of management functions. Therefore, if the donor is reclassified as an assistant or substitute, they fail to comply with the requirement to decouple from management.

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