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V0193-21 8 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · transmisiones lucrativas

Failure to meet requirements in share donations leads to total loss of tax reduction

A taxpayer received donated shares with a reduction in Inheritance and Gift Tax; however, following a corporate spin-off, they no longer met the exemption requirements for Wealth Tax. The DGT clarifies how this non-compliance affects the acquisition value of the shares for Personal Income Tax purposes.

The question raised

Acquisition value of the shares transferred in 2016.

The DGT's ruling

Non-compliance with the requirements of Article 20.6 of the LISD entails the total loss of the reduction, without partial or temporary non-compliance being permitted. If the requirements are not met, the donee must be taxed on the capital gain or loss using the value of the shares for Inheritance and Gift Tax purposes as the acquisition value and the date of the donation as the acquisition date. However, if the Administration's right to determine the donor's tax liability has expired, the exemption of the donor's capital gain shall remain valid and the donee shall be subrogated into the donor's position regarding the acquisition value and date.

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