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V1049-22 10 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · aportación no dineraria

Inventory contributed to a company is taxed as business income rather than capital gains

A taxpayer has requested clarification on the tax treatment of contributing business assets (machinery, inventory, goodwill) to a company of which they will be the sole shareholder. The DGT clarifies that inventory is treated as income from economic activities, whereas the remaining assets may generate capital gains or losses.

The question raised

Tax treatment of said operation in the Personal Income Tax.

The DGT's ruling

Inventories transferred to a company shall give rise to income from economic activities pursuant to Article 48 of the Personal Income Tax Law. For the remaining assets used in the activity, the gain or loss is determined by the difference between the acquisition value and the higher of: nominal value plus share premium, market quotation value, or market value. In the case of fixed assets, the acquisition value shall be the book value. If the special regime of the Corporate Tax Law is applied, no income is included in the Personal Income Tax, but this regime excludes inventories.

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