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V1375-23 22 May 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

The reduction coefficients of the ninth transitional provision cannot be applied if the assets are used for an economic activity

The taxpayer asks whether the reduction for seniority can be applied to the gain from the sale of a pharmacy office acquired in 1984. The DGT responds that, as these are assets used for an economic activity, said reduction is not applicable.

The question raised

Question posed: Whether the reduction coefficients provided for in the ninth transitional provision of the Personal Income Tax Law can be applied to the capital gain obtained from the sale of the business.

The DGT's ruling

The ninth transitional provision of the LIRPF applies to gains from the transfer of assets not used for economic activities or assets that have been decommissioned for more than three years. In the case of fixed assets used for the activity, the capital gain is determined by the difference between the transfer value and the book value. Therefore, the transitional reduction regime is not applicable even if the assets were acquired before 1994.

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