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V3361-20 16 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · aportación no dineraria

Non-monetary farm asset contribution without commercial accounting triggers capital gain or loss

A taxpayer asks about the tax treatment of contributing agricultural land from their farm to a company and subsequently donating the received shares. The DGT responds that, due to the absence of commercial accounting, the deferral regime cannot apply, and capital gain or loss must be taxed.

The question raised

Tax treatment of said contribution in Personal Income Tax, as well as a possible subsequent donation of the received shares to the taxpayer's parents.

The DGT's ruling

The contribution of real estate generates a capital gain or loss determined by the difference between the acquisition value and the higher of: the nominal value of the shares, the market quotation value, or the market value. As they are used for an economic activity, the acquisition value shall be the book value, reduced by tax-deductible depreciation. Since accounting is not maintained according to the Commercial Code, it is not possible to apply the special deferral regime under Article 87 of the Corporate Income Tax Act.

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