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V0788-19 ·12 April 2019 ·consulta-vinculante Medium impact
Tax

Dividend distribution does not affect family business tax relief if the acquisition value is not reduced

A query was raised regarding whether dividend distributions in a donated company affect the tax benefits for the donor (Income Tax) and the donees (Gift and Inheritance Tax). The DGT ruled that it does not, provided the operation does not result in a substantial reduction in the acquisition value upon which the relief was applied.

In 6 key points

How it affects those involved

The ruling provides legal certainty for taxpayers managing family businesses, confirming that dividend payments do not automatically trigger the loss of tax reliefs, as long as the underlying value of the donated assets remains substantially intact.

Lifecycle

2019-04-12PublishedPublished 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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