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V1043-16 15 March 2016 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · derecho de crédito

FOGAIN guarantee payments due to securities firm insolvency are not subject to Personal Income Tax (IRPF)

An investor enquired whether the amount received from FOGAIN following the intervention of their securities firm was subject to Personal Income Tax. The Directorate General for Taxes (DGT) ruled that such payment does not constitute income, but rather the settlement of a monetary credit right.

The question raised

Impact on Personal Income Tax of the amount paid to the taxpayer by the General Investment Guarantee Fund.

The DGT's ruling

The payment made by FOGAIN, after subrogating into the investor's rights, has as its sole consequence the extinction of the taxpayer's monetary credit right. Therefore, it does not constitute a taxable event for Personal Income Tax (IRPF) as it does not involve the receipt of income. Nevertheless, income previously obtained from investments or the closing of positions remains subject to taxation.

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