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V2590-19 23 September 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · operaciones societarias

Contribution of a plot of land in a capital increase is exempt from ITP and AJD

An individual has enquired about the tax treatment of contributing a buildable plot of land to a company through a capital increase. The DGT has ruled that while the transaction falls under the category of corporate operations, it is exempt from tax.

The question raised

Which taxes are involved in this procedure and how they should be taxed.

The DGT's ruling

The contribution of a plot of land in a capital increase is a transaction subject to the corporate operations modality of the Transfer Tax and Stamp Duty (ITP and AJD). However, said transaction is exempt pursuant to Article 45.I.B.11 of the Recast Text of the Tax. This liability, even if exempt, prevents the application of the modalities of onerous asset transfers or variable quota of the notarial document due to incompatibility.

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