Profitable transmission

economic-dictionary

There is a lucrative transfer when an exchange or transaction occurs without consideration. That is, when there is an exchange without receiving anything by one of the parties.

In the field of civil and commercial law, there are the figures of onerous and lucrative transfer. In the first there is a consideration in the transaction or exchange of a good, right, property or asset. On the other hand, lucrative transmission occurs in those cases in which one party gives something with economic value to another, without receiving this nothing in return. So it can be likened to a donation or gift.

These types of transactions are also called “free” transactions or exchanges. Because it is considered a de facto gift from one party to the other.

Lucrative transmission situations

Profit-making transactions are related, within civil law, to acts of transfer of assets and rights. For this reason, in most countries, a special tax is applied for these cases. A tax called gift, inheritance, and bequest tax. The lucrative transmissions, usually occur in those circumstances in which there is a special relationship between the parties, such as family relationships or strong union between people or organizations.

The idiosyncrasy of this legal figure allows the transfer of assets between physical and legal entities in a "free" manner, as long as one of the parties does not give anything in exchange for the receipt of a good or right, but nevertheless if it is subject to taxes in the in the event that this donated asset generates additional income.

For greater control and not to circumvent the country's finances, both from the fiscal point and from the patrimonial control, these transactions are usually subject to taxes that prevent the simulation of onerous transactions or irregular payments between parties.

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