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V1581-17 19 June 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · prescripción

Statute of limitations for transfer tax may be calculated from the date of the signatory's death

A query was raised regarding when the limitation period for settling transfer tax begins following the death of a buyer involved in a private contract from 1980. The DGT ruled that if the deceased was a signatory, the date of death serves as the relevant date for the statute of limitations regarding the document.

The question raised

To determine the date from which the prescription period 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 deemed to have prescribed due to the date of the buyer's death being considered certain, or conversely, whether the date would be presumed to be that of the filing.

The DGT's ruling

For private documents, the date for prescription purposes shall be that of the death of any of the signatories, pursuant to Article 1.227 of the Civil Code. If the deceased buyer was a signatory to the private contract, their death shall be computed as the date of the document. In this event, the prescription period for the tax shall be deemed to have elapsed.

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