New capital gains tax regulation may still be unconstitutional
10/05/2022
New capital gains tax regulation may still be unconstitutional
En los medios
Last October 26, through an information note, the Constitutional Court declared unconstitutional and null and void the system for calculating the taxable base of the Tax on the Increase in Value of Urban Land, also known as "municipal capital gains tax".
In record time, knowing the terrible economic consequences that such a ruling would have for municipalities, the Government reacted and approved Royal Decree-Law 26/2021, of November 8, adapting the consolidated text of the Law Regulating Local Treasuries, approved by Royal Legislative Decree 2/2004, of March 5, 2004, to the recent case law of the Constitutional Court regarding the Tax on the Increase in Value of Urban Land.
The Royal Decree-Law that amend the regulatory vacuum generated by the Constitutional Court's ruling could be unconstitutional on both formal and material arguments.
This is the opinion of our colleagues from the tax department, Juan Ignacio Echarren and Luis Román, who have spoken to Economist & Jurist, and who have written about it in this article.
What are the consequences of possible unconstitutionality?
See the full article in Economist & Jurist
