Taxation on transfer of assets to withdrawing partner
Transfer of the asset or asset to the withdrawing partner, provided that in a specific situation, namely, as a return of participation in the capital stock, it may be at market value or book value.
If transferred at market value to the partner, the taxation of the capital gain falls on the legal entity that held the investment.
If the asset is transferred to book value (without considering any adjustments arising from fair value valuation provided for in Law 11,638 / 2007), the focus is shifted to the partner who receives the good or asset, which should provide the information. corresponding declaration of assets.
IV – The transfer to book value provides a deferral of taxation of capital gain, which will only be calculated if and when the partner who received the investment promotes its realization. In this context, the transfer of assets to the partner cannot be done by mere liberality, but only by the return of participation in the share capital.
The return of the capital stock treated by art. 22 of Law 9,249 / 95, at book or market value, occurs only if a specific condition regarding the reduction of the capital stock is met, which must be properly motivated.
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Advisory and Tax Litigation Nucleus
Posted in: 21/01/2020