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A taxi driver asks whether the seventh additional provision of the LIRPF can be applied when transferring his licence to his son after switching to objective estimation. The DGT confirms it is possible if objective estimation performance is determined at the time of transfer and the transfer is to relatives up to the second degree.
Application of the reduction established in the seventh additional provision of the Personal Income Tax Law to the capital gain obtained from the sale of the license.
The transfer of a taxi license generates a capital gain or loss calculated by the difference between the transfer value and the book value. Taxpayers operating taxis under the objective estimation method may reduce capital gains from the transfer of intangible assets if the transfer is due to retirement, disability, cessation due to restructuring, or to relatives up to the second degree. The regulation does not require a minimum period of stay under the objective estimation method to apply said reduction.
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