Back to index
V0687-22 30 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Disability tax reduction cannot be applied if self-employed taxi activity continues

A taxi driver with a permanent disability inquired whether they could reduce the capital gains tax resulting from the sale of their licence. The DGT ruled that if the activity continues following the disability, the transfer is not considered to be motivated by such cause, and therefore the reduction does not apply.

The question raised

Whether they 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 assets (licenses) requires the taxpayer to use the objective estimation method. Furthermore, the transfer must be motivated by permanent disability, retirement, or cessation due to restructuring, or alternatively, be transferred to relatives up to the second degree. If the taxi driver continues the activity following the disability, the subsequent sale is not considered motivated by the disability, but rather by the cessation of activity, resulting in the loss of the tax benefit.

Book your free first meeting