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V0246-16 25 January 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deducción por doble imposición interna

Right to dividend tax relief for premiums paid on the acquisition of shares

The taxpayer asks whether they can claim tax relief on dividends arising from a premium paid when acquiring shares, under both previous regulations and the transitional regime of the Corporate Income Tax Act. The DGT rules that this is permissible provided it is proven that an equivalent amount was taxed under Personal Income Tax for the transferors.

The question raised

1. Whether the deduction provided for in Article 30.6 of the Recast Text of the Corporate Income Tax Law is applicable to dividends distributed in 2014, and whether the provision set forth in the twenty-third transitional provision of the Corporate Income Tax Law may be applied to dividends distributed in the 2015 fiscal year and subsequent years.

The DGT's ruling

The entity may apply the deduction provided for in Article 30.6 of the Recast Text of the Corporate Income Tax Law if it proves that the dividend corresponds to the premium paid and that said amount was included in the taxable base of the sellers' Personal Income Tax due to the transfer. The deduction shall be partial if the evidence is partial and may not exceed the tax rate applicable to savings capital gains. Under the Corporate Income Tax Law, the twenty-third transitional provision allows this right for acquisitions made prior to 2015, but only until the amount that was taxed for the transferors before January 1, 2015, is exhausted.

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