Limit on the disability reduction in the transfer of licenses

The application of tax benefits in the transfer of assets requires strict compliance with the motivating circumstances established in the regulations. Recently, the Dirección General de Tributos (DGT) has clarified the scope of the reduction provided for in the seventh additional provision of the Personal Income Tax (IRPF) Law regarding the sale of licenses.

What the DGT has resolved

The ruling analyzes whether it is possible to apply the permanent disability reduction to the capital gain obtained through the sale of a license. The administration's criterion establishes that the transfer must be directly motivated by disability, retirement, or cessation due to restructuring, or alternatively, be carried out to relatives up to the second degree.

The key point of the resolution lies in temporality and cause. If the license holder continues to carry out the economic activity after having received the permanent disability declaration, the subsequent transfer of said license is not considered to be motivated by the disability. Consequently, the resulting capital gain must be taxed without the possibility of applying the aforementioned reduction.

What this means for you

This criterion directly affects self-employed professionals, such as taxi drivers, who hold licenses and wish to optimize their tax burden in a situation of disability or retirement. The regulations require that the reason for the sale be the situation of disability or cessation itself. If there is a period of activity following the disability declaration and the sale occurs afterward, the Administration will understand that the transfer does not respond to the cause that justifies the tax benefit.

What should be done

In a situation of disability or an intention to transfer a license to apply the IRPF reduction, it is necessary to analyze the exact moment of the transfer regarding the cessation of activity. Each situation presents particularities that must be evaluated to determine whether the requirements of the seventh additional provision of Law 35/2006 are met. It is recommended to assess the traceability of the activity and the motivation for the sale before proceeding with the operation.