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V0548-19 14 March 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · actos jurídicos documentados

AJD tax should not be levied on completion of works if already paid during the new build declaration

A query was raised regarding whether the deed of completion of a new build must be subject to Stamp Duty (AJD). The DGT ruled that, given the complexity of the documentation, if the tax has already been settled during the initial declaration of works under construction, a new assessment is not appropriate to avoid double taxation.

The question raised

Whether the referred operation is exempt or must be subject to the Transfer Tax and Stamp Duty.

The DGT's ruling

The declaration of new construction is a complex documentation act requiring two instruments: the deed of declaration and the certificate of completion. The submission of either initiates the AJD (Stamp Duty and Documented Legal Acts Tax) assessment procedure. If it is proven that the tax has already been assessed in the first document, a new assessment must not be issued for the second to avoid duplication.

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