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V0158-15 19 January 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · doble imposición interna

Deduction for double taxation on dividends possible even if transferor is a non-resident

A consulting company asks whether the internal double taxation deduction can be applied to dividends relating to a premium paid when acquiring a share, where previous transferors included a non-resident entity. The DGT responds that to avoid economic double taxation, the rule must include non-residents who have been taxed in Spain through transfer.

The question raised

1. Whether Article 30.6 of the Recast Text of the Corporate Income Tax Law is applicable to the dividend distributed in the 2013 fiscal year.

The DGT's ruling

Article 30.6 of the Recast Text of the Corporate Income Tax Law allows for the exclusion of the dividend corresponding to the premium paid from the taxable base, provided that the taxation of an equivalent amount by the previous transferors is proven. Although the rule does not explicitly mention non-residents, an integrative interpretation allows their taxation under Non-Resident Income Tax to be equated with Corporate Income Tax or Personal Income Tax to avoid double taxation. The deduction shall be applied according to the tax rate that applied to each transferor (Corporate Income Tax, Personal Income Tax, or Non-Resident Income Tax) and may be partial if the evidence is partial.

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