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V3069-23 24 November 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · provisión técnica

Payment of technical provisions and distribution of social assets in a mutual society are taxed as capital gains or losses

An entity responsible for liquidating a social security mutual society for funeral services has requested a ruling on the tax treatment of the payment of technical provisions and the distribution of social assets. The DGT has determined that both amounts constitute capital gains or losses and are not subject to withholding tax.

The question raised

Obligation to withhold and the tax regime under Personal Income Tax applicable to the payment of the technical provision and the distribution of the social assets of the social welfare mutual society.

The DGT's ruling

The technical provision paid upon the expiration of contracts is classified as a capital gain or loss, calculated as the difference between the amount received and the unconsumed premiums, and is included in the general tax base. The distribution of social assets is also a capital gain or loss, calculated as the difference between the liquidation quota and the acquisition value (which shall be zero except for non-reimbursed contributions), and is included in the savings tax base. Neither of the two amounts is subject to withholding or payment on account.

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