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V1900-18 27 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento de la actividad económica

Sale of a business: taxation of stock as business income and fixed assets as capital gains

A query was raised regarding the taxation of the transfer of a tobacco shop. The DGT ruled that the sale of stock generates business income, whereas the transfer of fixed assets results in capital gains or losses.

The question raised

Question posed: Taxation of the sale under Personal Income Tax.

The DGT's ruling

The transfer of inventory constitutes income from economic activity that is included in the general taxable base. On the other hand, the transfer of fixed assets (tangible or intangible) generates a capital gain or loss calculated as the difference between the transfer value and the book value. In the case of goodwill, the capital gain is the difference between the sale price of the business and the sum of the market values of the individual identifiable assets.

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