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V1103-14 15 April 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Tax reduction for taxi licence transfers applicable upon retirement or disability

A holder of an inactive taxi licence enquired whether the reduction provided for in Article 42 of the IRPF Regulations could be applied upon its transfer. The DGT ruled that the reduction is available if the taxpayer determined their income using the objective estimation method and ceases the activity due to retirement or declared disability.

The question raised

If the license is transferred now, can the reduction provided for in Article 42 of the IRPF Regulations be applied.

The DGT's ruling

The transfer of the license generates a capital gain or loss. The reduction provided in Article 42 of the IRPF Regulations is applicable if the taxpayer carries out the activity under the objective estimation method and the transfer is due to retirement, permanent disability, or cessation due to restructuring. In the case of retirement or disability, the activity must cease from the moment said circumstance occurs, without a maximum period for the subsequent transfer.

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