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V3456-20 30 November 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · actos jurídicos documentados

Establishment of a Compensation Board may be exempt from AJD if performing public functions

A query was raised regarding whether the deed of establishment of a Compensation Board is subject to Stamp Duty (AJD) and how to calculate its tax base. The DGT indicates that, although it meets the requirements to be taxed on a variable rate, it could be exempt if it acts as a public body.

The question raised

Whether the deed of incorporation of the referenced Compensation Board, as well as any subsequent admissions of new members, is subject to the settlement of the tax on property transfers and documented legal acts (ITPAJD) under the modality of documented legal acts (AJD), and if so, what the calculation of the applicable base would be.

The DGT's ruling

The deed of incorporation of a Compensation Board is subject to the variable rate of Stamp Duty (AJD) based on the value of the included properties, provided it is not an act of onerous transfer or a corporate act. However, if the Board acts in the exercise of delegated public functions, it is integrated into the scope of public bodies and is entitled to the exemption under Article 45.I.A) a). If it were to carry out lucrative activities, it would be equated to a company and the exemption for the incorporation of companies under Article 45.I.B) 11 would apply.

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