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V2965-17 16 November 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · cuentas en participación

Returns from joint venture accounts are taxed as income from movable capital

The applicant inquired about the Personal Income Tax (IRPF) treatment of profits derived from a joint venture account contract. The Directorate General for Taxes (DGT) ruled that these returns are classified as income from movable capital, as they constitute a transfer of own funds to the manager.

The question raised

Taxation in the Personal Income Tax of the returns obtained by the applicant from the joint account.

The DGT's ruling

The returns obtained by the participant in a joint account contract are classified as income from movable capital, pursuant to Article 25.2 of Law 35/2006. This is due to the fact that the contract involves a transfer of own funds to the manager to participate in its commercial operations. As the manager is a commercial company, these returns are subject to withholding tax.

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