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V4145-16 ·27 September 2016 ·consulta-vinculante Medium impact
Tax

Exemption on transfer of shares does not apply to income other than undistributed profit increases if the entity is a holding company

A company queried whether the transfer of 100% of the shares in a subsidiary could qualify for the Corporate Tax exemption. The DGT clarifies that if the subsidiary is a holding company, the exemption only applies to the portion of income corresponding to an increase in undistributed profits generated during the period of ownership.

In 6 key points

How it affects those involved

This ruling limits the scope of the participation exemption for holding companies, ensuring that only the growth in undistributed profits is exempt, rather than the entire proceeds from the share transfer.

Lifecycle

2016-09-27PublishedPublished 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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