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V2980-18 19 November 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · disolución de comunidad de bienes

Dissolution of joint property without excess adjudication is subject to Stamp Duty

The applicant inquired about the tax treatment of dissolving a joint property community where assets are allocated according to ownership shares. The DGT ruled that if there is no excess adjudication, no onerous transfer occurs, and the transaction is subject to Stamp Duty (Actos Jurídicos Documentados).

The question raised

Taxation of the operation.

The DGT's ruling

The dissolution of a community of property that does not carry out business activities does not constitute a transfer of assets if the allocation is made in proportion to the ownership share, being taxed under documented legal acts. If there is an excess of allocation with financial compensation, it is considered an onerous transfer subject to Transfer Tax (ITP), unless the asset is indivisible or its division is deemed impractical, in which case it will be taxed under documented legal acts. The tax base shall be the value declared in the deed.

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