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V5318-16 15 December 2016 · SG de Tributos Locales Criterion in force
OTRO · incremento de valor

Transfer expenses cannot be deducted to determine the tax base for Wealth Tax (IIVTNU)

The applicant asks whether the transfer price can be reduced by certain items to calculate the capital gain. The DGT responds that the tax base is determined exclusively through the rules set out in Article 107 of the TRLRHL.

The question raised

In relation to the described facts, the taxpayer asks whether, in order to determine the actual increase in wealth, the transfer price may be reduced by any of the following concepts:

The DGT's ruling

For the determination of the taxable base of the Tax on the Increase in Value of Urban Land, none of the reduction concepts proposed by the taxpayer shall be taken into account. The taxable base is obtained by applying the valuation rules contained in Article 107 of the TRLRHL, which are based on the value of the land at the time of accrual according to the Real Estate Tax.

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