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V1069-16 16 March 2016 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IS · comunidad de bienes

The withdrawal of a joint owner from a community of property is not subject to the special merger and demerger regime

A taxpayer inquired whether participation in an agricultural community of property allows for a reduction in Inheritance Tax and whether the withdrawal of a joint owner falls under the merger and demerger regime. The DGT did not address the first question as it was untimely and clarified that the withdrawal of a joint owner is not covered by the special regime of the Corporate Tax Act.

The question raised

1- Whether the deceased's participation in a community of property engaged in an agricultural activity can be understood as included in Article 20.2.c) of Law 29/1987.

The DGT's ruling

The inquiry regarding the reduction for participation in an agricultural community of property is inadmissible as it was submitted after the tax self-assessment. Assuming the correct application of the reduction, the separation of a co-owner does not prevent its maintenance provided that the acquisition value is maintained without substantial reduction. Finally, the separation of a co-owner is not listed among the operations that may benefit from the special tax regime for mergers, demergers, asset contributions, and exchange of securities under the Corporate Income Tax Law.

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