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V3056-21 7 December 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Potential reduction in capital gains from taxi licence transfers due to permanent disability

A taxi driver has enquired whether a tax reduction can be applied when selling their licence following a declaration of permanent disability. The Directorate General of Taxes (DGT) has ruled that this is possible, provided the individual determines their income under the objective estimation method and the transfer is motivated by said disability or the cessation of activity.

The question raised

Whether, when transferring the auto-taxi license, the taxpayer could benefit from the reduction of capital gains provided for in the seventh additional provision of the Personal Income Tax Law.

The DGT's ruling

The reduction provided for in the seventh additional provision of the Personal Income Tax Law is applicable if the taxi driver uses the objective estimation method and the transfer of the license (intangible fixed asset) is motivated by permanent disability, retirement, or cessation of activity. If the taxpayer continues to carry out the activity following the disability, the subsequent transfer would not be motivated by the disability, but by the cessation of activity, which would prevent the reduction unless other legal grounds concur.

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