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V3279-17 21 December 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · hecho imponible

Withdrawing cash from personal accounts generally has no tax implications for Personal Income Tax

The inquirer asks about the tax treatment of withdrawing cash from personal and business accounts for safekeeping and use in payments. The Directorate-General for Traffic (DGT) indicates that withdrawing money from a personal account does not affect Personal Income Tax (IRPF), but warns of the need to prove the origin of the funds.

The question raised

The tax treatment, under Personal Income Tax (IRPF), of the withdrawal and the use of said money for making payments is consulted.

The DGT's ruling

The withdrawal of cash from a personal bank account and its subsequent use for investments or payments does not, in principle, have any significance for Personal Income Tax (IRPF). However, the taxpayer must prove the origin of the money used for investments or payments. The DGT cannot rule on money withdrawn from a company or on the origin of the funds without knowing the legal form or the title of the withdrawal.

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