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V1808-14 9 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

PIVE Plan vehicle purchase grants classified as capital gains for Income Tax purposes

A taxpayer requested clarification regarding the tax treatment of subsidies received under the PIVE Plan when purchasing a new vehicle and scrapping an old one. The Directorate General for Taxes (DGT) has determined that such aid constitutes a capital gain.

The question raised

Tax treatment in the Personal Income Tax (IRPF) of the aid to be received.

The DGT's ruling

The receipt of aid from the Efficient Vehicle Incentive Program (PIVE-2) represents a capital gain, as it constitutes a variation in the value of the assets due to a change in their composition. Since it does not constitute a transfer, the amount of the subsidy shall be the amount of the gain. This gain forms part of the general income and is not subject to any applicable exemptions.

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