Impossibility of rectifying the value declared for Transfer Tax if it is the highest amount

The determination of the taxable base in Transfer Tax and Stamp Duty (ITPAJD) presents complex scenarios when the property subject to the transaction lacks a cadastral reference value. In these cases, the regulations establish a system of comparing amounts to determine the amount upon which the tax will be applied.

What the DGT has resolved

The Directorate General of Taxes (DGT) has addressed the question of whether it is possible to rectify the content of a self-assessment once it has been submitted. The criterion focuses on the rule of the highest amount. When no cadastral reference value exists, the taxable base must be the highest of these three amounts:

• The value declared by the interested parties.
• The price agreed upon in the transaction.
• The market value.

The resolution determines that if the value declared by the taxpayers is the highest of the three aforementioned amounts, said value is not subject to subsequent rectification. This implies that the administration considers that the taxable base has already been correctly fixed under the principle of the highest amount.

What this means for you

This resolution has a direct impact on individuals acquiring a home. If, when performing the tax self-assessment, one opts to declare a value that, after comparison, turns out to be the highest of the three legal parameters, the taxpayer loses the possibility of correcting that figure downwards in the future. The decision made at the time of submission acquires a definitive character if it meets this condition of being the highest amount.

What should be done

In the absence of a cadastral reference value, it is fundamental to perform a rigorous analysis of the three amounts before submitting the self-assessment. Since rectification will not be viable if the declared value is the highest, it must be ensured that the recorded figure faithfully reflects the economic reality of the transaction and complies with current regulations. It is necessary to assess each particular situation to avoid errors in determining the taxable base.