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A father intends to donate shares in a limited company to his son, who is already a shareholder and holds a management position. The Directorate General of Taxes (DGT) has ruled that if the requirements for exemption under Wealth Tax and the conditions of the Inheritance and Gift Tax Law are satisfied, the exemption under Personal Income Tax (IRPF) is applicable.
This ruling provides legal certainty for family business successions, confirming that meeting specific tax requirements for gifts and wealth can also trigger income tax exemptions on capital gains.
The tax team reviews your specific situation.
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