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A retired taxi driver inquires whether working as an employee after retirement would result in the loss of the reduction for the transfer of his taxi license. The DGT responds that the reduction is applicable provided that the activity of auto-taxi transport has ceased.
Question posed: Currently, the possibility of working as an employee with another auto-taxi holder is being considered. Whether working as an employee would result in the loss of the application of the reduction provided in the seventh Additional Provision of the Tax Law.
The reduction provided in the seventh Additional Provision of the LIRPF is applicable if the transfer of the taxi license is motivated by retirement and the taxpayer determines their income through the objective estimation method. The tax benefit is not lost if, following retirement, the taxpayer works as an employee, whether through active retirement or by suspending pension payments. What precludes the reduction is the holder continuing to carry out the same auto-taxi transport activity after retiring.
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