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V1465-15 11 May 2015 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · declaración de obra nueva

The taxable base for the new construction declaration is the material execution value at the time of the work

A query is made as to whether the taxable base for the new construction declaration should be the cost of the work at the date of its execution or at the date of the notarial document, and whether corrective indices may be applied. The DGT responds that it must be the material execution value at the time the work was carried out, without applying deflators.

The question raised

Question posed Given that the new construction deed is to be executed subsequent to the completion of the works in 1990, it is asked whether the taxable base of the tax should be the real cost value of the new construction on the said date or at the time of the execution of the notarial document. Furthermore, given that due to the time elapsed the work has lost a large part of its value, it is asked whether it is correct to apply corrective indices based on age and deflation coefficients to obtain the taxable base of the Tax on Documented Legal Acts.

The DGT's ruling

The taxable base for the new construction declaration is the real cost value of the work, understood as the material execution value. This value must be the one corresponding to the time when the work was carried out. The application of deflation coefficients or corrective indices based on age is not appropriate to determine said base.

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