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V2392-19 11 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · condición resolutoria

Taxpayers may request self-assessment rectification to recover tax following contract rescission

A taxpayer inquired about recovering tax paid on capital gains after a farm sale contract was rescinded due to the developer's breach. The Directorate General for Taxes (DGT) clarified that rescission has retroactive effects, allowing for the rectification of the tax self-assessment.

The question raised

In what manner can the refund of the tax corresponding to the capital gain declared from the initial sale be obtained.

The DGT's ruling

The termination of a contract due to the breach of a resolutory condition has retroactive effects (ex tunc), which entails returning to the pre-existing legal state as if the transaction had not been concluded. Upon the disappearance of the initial change in assets, the taxpayer may request the rectification of their tax returns to exclude the declared capital gain. The competence to process these requests and decide on their requirements lies with the State Tax Administration Agency.

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