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V1179-18 9 May 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · prescripción

ITPAJD limitation period begins from date of death if seller was a signatory to the private contract

A query was raised regarding when the limitation period for settling tax begins following a private sale formalised before a notary years later. The DGT indicates that if the seller died after signing the contract, the limitation period starts from the date of death rather than the date of formalisation.

The question raised

To determine the date from which the statute of limitations for the settlement of the Transfer Tax (Impuesto de Transmisiones Patrimoniales Onerosas) begins to run, and whether the obligation to settle the transfer tax would be considered expired due to the certainty of the seller's date of death, or conversely, whether the date would be presumed to be that of the presentation.

The DGT's ruling

For private documents, the date is presumed to be that of their presentation, unless the death of one of the signatories occurs pursuant to the Civil Code. If the deceased seller was a signatory to the private contract, the date that counts for the statute of limitations is the date of their death. In this case, the four-year period established by the General Tax Law would be computed from said death.

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