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V1842-14 9 July 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · fianza

Cancellation of a guarantee is not subject to Stamp Duty

A taxpayer inquired whether the removal of a guarantor in a mortgage loan subrogation deed is subject to Stamp Duty (AJD). The DGT ruled that the cancellation of a guarantee does not constitute a taxable event for this tax.

The question raised

Whether said removal of the guarantor would be taxed under the concept of documented legal acts.

The DGT's ruling

The establishment of a guarantee is a transaction subject to onerous transfers of assets, but the cancellation of the guarantee does not constitute a taxable event for ITPAJD. Likewise, the cancellation is not subject to the modality of documented legal acts as it is not an act registrable in the registries mentioned in the law.

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