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V0003-15 2 January 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · socimi

Exemption of dividend retention between SOCIMIs and non-taxable entities

The DGT confirms that dividends distributed by a SOCIMI to its sole shareholder, who is also a SOCIMI, are not subject to retention since both comply with the requirements of Law 11/2009.

The question raised

1. Exemption from withholding on dividends paid to a SOCIMI by its subsidiary, when the latter is an unlisted SOCIMI as regulated in Article 2.1.c) of Law 11/2009.

The DGT's ruling

Dividends distributed by a company applying the special regime for SOCIMIs and received by a shareholder who is also a subject of Corporate Income Tax and meets the requirements of Law 11/2009 are not subject to withholding. Compliance with the three-year maintenance period for real estate properties may be observed at the consolidated group level, provided that the group is composed exclusively of SOCIMIs and other entities under Article 2.1 of Law 11/2009. The distribution of profits may be carried out in kind or through the delivery of shares, provided that it is tax-qualified as a distribution of dividends.

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