Skip to content
Back to index
V0059-20 14 January 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · exención de dividendos

Dividends and capital gains from the transfer of holdings may be exempt if the requirements of Article 21 of the LIS are met

The consulting entities inquire whether they may apply the Corporate Income Tax exemption to dividends received and to the gain from the sale of holdings. The DGT indicates that the exemption depends on compliance with the requirements regarding minimum participation, holding period, and the nature of the investee entity.

The question raised

Issue raised 1. Possibility of applying the exemption provided for in Article 21 of the LIS to the dividends received by entities A, B, C, and D.

The DGT's ruling

Dividends are exempt if at least 5% of the capital is held or an acquisition value exceeding 20 million euros is maintained, holding the participation uninterruptedly. If the investee entity is a 'holding company' (more than 70% of income from similar sources), the 5% participation requirement must also be met in indirect entities. In the event of a transfer, the exemption for patrimonial entities is limited to the portion of the income corresponding to an increase in undistributed profits.

Email
Contact