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V2643-21 ·2 November 2021 ·consulta-vinculante Medium impact
Tax

Exemption for share awards does not apply if the offer is limited to employees in specific roles

An employee inquired whether the free award of company shares is exempt from Personal Income Tax (IRPF). The Directorate-General for Taxes (DGT) ruled that the exemption does not apply because the offer is not made under the same conditions for all employees, as it is restricted to those holding certain positions.

In 5 key points

How it affects those involved

Companies offering share schemes must ensure that such offers are made to all employees under identical conditions to qualify for tax exemptions; otherwise, the benefit may be treated as taxable income in kind.

Lifecycle

2021-11-02PublishedPublished 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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