Skip to content
Back to index
V2462-24 5 December 2024 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · operaciones societarias

FEI cannot claim exemption from ITPAJD under EU Protocol or Art. 45.1.a) TRLITPAJD in capital reduction with return of contributions

The European Investment Fund (FEI), a subsidiary of the European Investment Bank, asks whether its proposed capital reduction with return of contributions in Spanish entities may be exempt from ITPAJD. The DGT concludes that the exemption under Article 3 of the EU Protocol on privileges and immunities applies only to indirect taxes on purchases of goods or services for official use, which does not apply in the case of capital reduction. The subjective exemption under Article 45.1.a) TRLITPAJD also does not apply, as the Protocol does not equate the FEI's regime with that of the State.

The question raised

Whether the consulting entity, based on Article 3 of the Protocol on the Privileges and Immunities of the European Union, could benefit from the exemption established in Article 45.I.A.a) of the consolidated text of the Law on Transfer Tax and Documented Legal Acts, or failing that, be exempt from the Transfer Tax and Documented Legal Acts Tax when obtaining the return of contributions made to the share capital of Spanish entities.

The DGT's ruling

The capital reduction with return of contributions does not meet the requirements of the EU Protocol, as the latter requires that taxes be included in the price of goods or services. Furthermore, the exemption under Article 45.I.A.a) of the TRLITPAJD is not applicable because the Protocol does not equate the tax regime of the entity to that of the State or Public Administrations.

Book your free first meeting