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V2851-21 17 November 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · donación

Donating assets to a local council is exempt from capital gains tax and the deduction base is determined by Wealth Tax rules

A taxpayer inquired about the valuation of a painting and a book collection donated to a local council for tax deduction purposes, as they lacked a book value. The Directorate General for Taxes (DGT) ruled that the capital gain is exempt and that the deduction base shall be the value determined in accordance with Wealth Tax regulations.

The question raised

How should said assets be valued for the purposes of applying the donation deduction in Personal Income Tax, taking into account that the taxpayer does not carry out any economic activity and therefore does not have a book value for such assets.

The DGT's ruling

The capital gain derived from the donation of assets to a City Council is exempt from Personal Income Tax (IRPF). For the donation deduction, if no book value exists, the basis shall be determined according to the rules of Wealth Tax. In the case of works of art or antiques, these shall be computed based on their market value on the date the tax accrues.

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