A free transfer is when the donor (transferor) bestows a benefit or right without being paid, even though the transfer may be subject to the fulfillment of certain conditions, such as an inheritance, donation, or prize. The taxpayer in this type of conveyance is the party who accepts the benefit or right (transferee) since they receive an income.
A donation deductible under article 39 of the Tax Agreement Law is exempt since it receives a different tax treatment. Our focus here is solely on transfers considered capital gains for the recipient.
As described in previous articles, we calculate taxes due using the tax base (value to which the tax rate applies) and the aliquot (tax rate or percentage).
The tax base for transfers is derived as follows:
