Pharmacy owners cannot apply the exemption for those over 65
The transfer of a business or economic activity, such as a pharmacy, entails a specific tax treatment that does not allow for the use of benefits intended for a primary residence. The Dirección General de Tributos (DGT) has clarified the treatment of the elements that make up said sale and the impossibility of applying improper exemptions.
What the DGT has resolved
The inquiry analyzes whether the sale of a pharmacy can benefit from the exemption provided for in Article 33.4.b) of the Personal Income Tax Law (LIRPF). The binding body has determined that said exemption is not applicable, as this figure is reserved exclusively for the transfer of a primary residence.
Furthermore, the DGT details how the different components of the operation must be taxed:
- Stock: The transfer of products in stock generates income from economic activity, which is integrated into the general taxable base.
- Fixed assets: The sale of fixed assets produces a capital gain or loss, calculated by the difference between the transfer value and its book value.
- Goodwill: The gain derived from goodwill is obtained by subtracting the market value of the individual assets from the total sale price.
What it means for you
If you are a natural person owning an economic activity and plan to transfer it, you must know that the tax benefit for the sale of a primary residence for those over 65 is not extendable to your business. The operation will be taxed according to the nature of each element sold: products will be income from activity, and assets will be capital gains or losses.
What is advisable to do
In the event of such a transfer, it is necessary to perform a precise breakdown of the elements that make up the sale price. It is fundamental to correctly distinguish between the value of stock, the book value of fixed assets, and the market value of the assets to determine the exact tax impact on the general taxable base and the savings taxable base. It is recommended to assess each particular situation to ensure that the calculation of capital gains and losses complies with current regulations.
Frequently asked questions
- Can I use the primary residence exemption if I sell my business when I turn 65?
- No, the exemption in Article 33.4.b) of the LIRPF is exclusive to the primary residence and does not apply to the transfer of economic activities.
- How is stock taxed in the sale of a pharmacy?
- The transfer of stock generates income from economic activity, which is integrated into the general taxable base.