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V1646-22 8 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · cuentas en participación

Profits from joint venture agreements are taxed as income from movable capital

A query was raised regarding the taxation under Personal Income Tax (IRPF) of profits obtained following the liquidation of a joint venture agreement. The Directorate General for Taxes (DGT) rules that these profits must be classified as income from movable capital.

The question raised

Taxation under Personal Income Tax.

The DGT's ruling

In a joint venture agreement, the contributions of the participant become part of the manager's assets. As this constitutes a transfer of own funds to third parties to participate in commercial operations, the returns obtained are classified as income from movable capital pursuant to Article 25.2 of the Personal Income Tax Law.

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