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V0525-20 ·4 March 2020 ·consulta-vinculante Medium impact
Tax

Exemption from Income Tax does not apply to donations of shares not exempt from Wealth Tax

A query was raised regarding whether the donation of company shares that are not exempt from Wealth Tax can be treated as having no capital gain or loss for Income Tax purposes. The DGT ruled that, since the requirements for Wealth Tax exemption are not met, Article 33.3.c) of the Personal Income Tax Law (LIRPF) is not applicable.

In 6 key points

How it affects those involved

This ruling clarifies that taxpayers cannot avoid Income Tax on capital gains from donations if the assets involved do not qualify for Wealth Tax exemptions.

Lifecycle

2020-03-04PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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