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V0991-17 24 April 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · sustitución fideicomisaria de residuo

Tax on substitution of residue accrues upon the death of the fiduciary

A taxpayer has enquired as to when tax is due on assets received through a substitution of residue trust following the death of an aunt (the fiduciary). The Directorate General for Taxes (DGT) has ruled that the tax accrues when the trust limitation ceases to exist, which occurs upon the death of the fiduciary.

The question raised

Taxation of the assets received.

The DGT's ruling

In residuary fideicommissary substitutions, the tax accrues on the day the trust limitations cease, which occurs upon the death of the fiduciary. The settlement must be carried out based on the value of the assets at that time and the tax rates in force on said date. The fideicommissary succeeds directly to the original decedent (the uncle).

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