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V0510-14 25 February 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Sectoral restructuring reduction cannot be applied if the transfer is due to internal restructuring

A taxpayer inquired whether they could apply the reduction under Article 42 of the Personal Income Tax (IRPF) Regulations when transferring a taxi licence via sectoral restructuring. The Directorate General for Taxes (DGT) ruled that the reduction is not applicable because the stated cause is an internal restructuring of the activity rather than a restructuring of the sector.

The question raised

Whether the reduction provided for in Article 42 of the IRPF Regulations could be applied to capital gains derived from the transfer of the license, given that the transfer is motivated by a sector restructuring.

The DGT's ruling

The reduction provided in Article 42 of the IRPF Regulations requires that the transfer of the taxi license be motivated by the cessation of activity due to sector restructuring. The concept of sector restructuring refers to measures for sectors in serious crisis seeking to recover their viability. An internal restructuring of the activity does not constitute a sector restructuring for the purpose of applying said reduction.

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