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V3654-16 5 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · cartera de seguros

Payments for purchasing a insurance portfolio are exempt from IRPF retention

A person acquires an insurance portfolio through monthly payments equal to 50% of generated income. The DGT considers these payments as compensation for acquiring patrimonial rights, not as remuneration for professional services.

The question raised

Personal Income Tax taxation of the monthly payments corresponding to the aforementioned purchase of a portfolio. Tax obligations arising from the acquisition of the said portfolio.

The DGT's ruling

The acquisition of an insurance portfolio constitutes the purchase of an asset used for business purposes and not remuneration for professional services. Therefore, the agreed consideration is not subject to withholding tax under Personal Income Tax (IRPF), as it does not fall within the cases of income subject to withholding under the Personal Income Tax Regulations.

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