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V2400-17 21 September 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
OTRO · permuta

Awarding of lots that does not extinguish all communities of property is taxed as a barter under ITPAJD and IIVTNU

A query was raised regarding whether the division of several inherited properties into lots of equal value to extinguish a joint ownership is subject to tax. The DGT determines that, as each community is not fully dissolved and excesses are avoided, the operation constitutes a barter.

The question raised

Taxation of the operation under the Transfer Tax and Documented Legal Acts Tax and the Tax on the Increase in Value of Urban Land.

The DGT's ruling

The operation constitutes a barter because each community of property is not dissolved in its entirety nor are allocation excesses avoided. As there is a transfer of rights between co-owners, ITPAJD is accrued as an onerous transfer of assets. Likewise, the barter is a method of transfer that triggers the taxable event for IIVTNU due to the increase in value of the urban land.

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