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V1809-20 ·8 June 2020 ·consulta-vinculante Medium impact
Tax

Dividends from issued shares in reward programmes exempt from withholding and account entry

A company asks whether withholding tax or account entry applies to a reward programme allowing shareholders to receive issued shares, sell rights, or sell them to the company. The DGT determines that although the income has dividend characteristics, no withholding or account entry is required in this case.

In 6 key points

How it affects those involved

Shareholders receiving issued shares through reward programmes are not subject to withholding tax or account entry, even though the income is considered dividend-like.

Lifecycle

2020-06-08PublishedPublished 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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