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V3069-20 13 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Capital gains tax reduction may apply to the transfer of taxi licences upon retirement

A taxi driver has enquired whether the reduction provided for in the seventh additional provision of the Personal Income Tax Act (LIRPF) can be applied when transferring their licence following retirement and the cessation of their activity. The Directorate General for Taxes (DGT) has ruled that this is possible, provided that the requirements for the objective estimation regime are met and the transfer is a direct consequence of retirement or the cessation of activity.

The question raised

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

The DGT's ruling

Taxi drivers taxed under the objective estimation method may reduce capital gains arising from the transfer of intangible assets, such as the license, if the transfer is due to retirement, permanent disability, or cessation of activity due to restructuring. If the cessation of activity is total, there is no maximum period for the transfer of the license and the reduction may be applied. However, if the holder continues to carry out the activity after retiring, the subsequent transfer would not be motivated by retirement but by the cessation of activity, resulting in the loss of the tax benefit unless other causes concur.

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