Skip to content
Back to index
V5004-16 17 November 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

No need to regularise tax relief for protected assets contributions following their dissolution

A taxpayer inquired whether they must repay income tax (IRPF) reductions applied to contributions made to their niece's protected assets fund following her death. The Directorate General for Taxes (DGT) ruled that the dissolution of the protected assets fund does not mandate regularisation, nor does it prevent the application of pending tax reliefs within the legal timeframe.

The question raised

Whether the taxpayer must carry out any type of regularization for the reductions applied in the 2012, 2013, 2014, and 2015 tax years, upon the extinction of the protected assets due to the death of the holder.

The DGT's ruling

The obligation to regularize arises from the disposal of assets during the year of contribution or in the following four years, but the extinction of the protected assets is not considered a disposal act. Therefore, there is no requirement to return the applied reductions, nor is the right to apply pending reductions lost due to exceeding limits, provided that the period of the following four tax periods is respected. The acquisition of assets following death is taxed under Inheritance and Gift Tax, not under Personal Income Tax.

Book your free first meeting