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V2875-21 17 November 2021 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · asunción de deuda

Assumption of debts in individual asset contributions is subject to ITP

The DGT confirms that the assignment of assets to settle assumed debts is a specific and taxable event, as it is not part of a business activity.

The question raised

Taxation of the assumption of debts for the purposes of the Transfer Tax and Stamp Duty, specifically whether the assumption of debts incurred to finance the purchase of the contributed assets shall be subject to Transfer Tax and Stamp Duty.

The DGT's ruling

If the elements provided do not constitute a line of business, the operation is considered an express allocation of assets in payment of the assumption of debts. This entails the obligation to tax under the modality of onerous transfers of assets pursuant to Article 7.2.B of the TRLITPAJD. The taxable event applies regardless of whether the debts were incurred to finance the purchase of the assets or otherwise.

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