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V1172-14 28 April 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Capital gains tax reduction may apply when transferring an auto-taxi licence to a child

A taxi driver has enquired whether a reduction in capital gains tax can be applied when transferring an auto-taxi licence. The DGT has ruled that this is possible if the transfer is made to relatives up to the second degree of kinship.

The question raised

Whether, when transferring the auto-taxi license, one could benefit from the capital gains reduction provided for in Article 42 of the Personal Income Tax Regulations.

The DGT's ruling

Taxi drivers taxed under the objective estimation method may reduce the capital gain from the transfer of intangible assets, such as the license, if the sale is due to retirement, disability, sector restructuring, or if it is transferred to relatives up to the second degree. The reduction percentage will depend on the time elapsed since the acquisition of the asset. The acquisition date will depend on whether the license was obtained through inheritance or through the liquidation of the community property regime.

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