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V1245-24 ·30 May 2024 ·consulta-vinculante Medium impact
Tax

Scrip dividend income is treated as dividends and subject to withholding tax if sold to the company

A query was raised regarding whether a company must apply withholding tax when its shareholders (legal entities without exemption) choose to receive cash, sell their rights on the market, or sell them to the company itself under a scrip dividend scheme. The DGT determines that this income is characterised as either a dividend or a capital gain and analyses the withholding tax treatment based on the option selected.

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2024-05-30PublishedPublished 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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