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V0107-22 24 January 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo en especie

Application of the €12,000 exemption for share awards and additional shares

A company has requested a ruling on whether the delivery of initial shares and 'additional shares' arising from a remuneration plan can qualify for the Income Tax (IRPF) exemption. The Directorate General for Taxes (DGT) responds that both deliveries may be exempt provided that the legal requirements are met.

The question raised

Application of the exemption provided in Article 42.3 f) of the Personal Income Tax Law to employment income derived from the delivery of shares and the so-called "additional shares".

The DGT's ruling

The delivery of initial shares and additional shares derived from assigned units is classified as income in kind from employment. Both may benefit from the exemption provided in Article 42.3 f) of the Personal Income Tax Law (LIRPF) if the offer is made under the same conditions for all employees. In the event that the cost of the additional shares exceeds the plan limit, the exemption shall only be applicable if the allocation is carried out using a proportional criterion among the participants.

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