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V2017-16 ·10 May 2016 ·consulta-vinculante Medium impact
Tax

Refunds of contributions in capital reductions are not subject to withholding tax, unless they derive from undistributed profits

A company has requested clarification on the withholding tax applicable to shareholders upon the acquisition of shares for subsequent cancellation through a capital reduction. The DGT clarifies that the transaction is treated as a capital reduction with a refund of contributions and determines the withholding tax treatment based on the source of the funds.

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2016-05-10PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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