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V1384-20 13 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Retirement tax reduction cannot be applied if the licence is transferred while maintaining compatible activity

A taxi driver inquired whether the transfer of his auto-taxi licence could qualify for the capital gains tax reduction for retirement. The DGT ruled that, as the activity is maintained through active retirement, the transfer is motivated by the cessation of activity rather than by retirement.

The question raised

Whether, upon transferring the auto-taxi license, one could benefit from the reduction of capital gains provided for in the seventh additional provision of the Personal Income Tax Law.

The DGT's ruling

The reduction of capital gains from the transfer of intangible assets (licenses) is not applicable if the holder continues to carry out the activity after retiring through the compatibility regime. In such a case, the transfer would not be motivated by retirement, but by the cessation of activity, which prevents the application of the tax benefit unless other prescribed causes occur.

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