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V1486-21 20 May 2021 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · aportación no dineraria

Non-ordinary business activity: asset assignment to settle tax debts

A company asks whether the contribution of hotel assets and assumption of its mortgage debts are exempt from ITP and AJD. The DGT states that since it is not a branch of business activity, the assignment of assets to settle debts constitutes a taxable transaction.

The question raised

Taxation of non-monetary contributions and the assumption of debts for the purposes of the Transfer Tax and Documented Legal Acts Tax. Specifically, confirmation of the following points:

The DGT's ruling

If the contribution does not constitute a line of business according to the Corporate Income Tax Law, it is considered an express allocation of assets in payment for the assumption of debts. In this case, the transaction must be taxed under the modality of onerous transfers of assets of the ITPAJD. Therefore, the portion of the asset value for which the consideration is the assumption of debts unrelated to the purchase of the asset shall be subject to the tax.

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