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V3108-17 30 November 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Tax reduction for taxi licence transfers following retirement and cessation of activity may apply

A taxi driver has enquired whether they remain eligible for the tax reduction on the transfer of their licence upon retirement. The DGT has responded that the benefit is applicable provided the transfer results from retirement and the taxpayer ceases their professional activity.

The question raised

Whether, in the case presented, the reduction established in the seventh additional provision of the Personal Income Tax Law would be lost.

The DGT's ruling

The reduction provided in the seventh additional provision of the Personal Income Tax Law (LIRPF) is applicable if the taxi driver determines their yield through the objective estimation method and the transfer of the license is motivated by retirement or cessation of activity. The benefit applies if the transfer is a consequence of retirement, provided that the holder ceases the auto-taxi transport activity. The requirement would not be met if the holder, even after retiring, continued to carry out the same activity.

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