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V0257-22 14 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Reinvestment tax exemption requires the acquisition of shares or social interests

A taxpayer inquired whether contributing funds to a company's treasury is sufficient to qualify for the capital gains reinvestment exemption, or if a capital increase is required. The Directorate General for Taxes (DGT) ruled that only the acquisition of shares or social interests allows for the application of this exemption.

The question raised

Whether for the application of the exemption regulated in Article 38.2 of the Personal Income Tax Law, it is sufficient to make a contribution by partners by entering it into the company's treasury, or whether it is necessary to carry out a capital increase by acquiring the corresponding social shares.

The DGT's ruling

The exemption of capital gains from the transfer of shares requires that the amount be reinvested in the acquisition of shares or interests that meet the requirements of Article 68.1 of the Personal Income Tax Law. Contributions that materialize solely as income in the company's treasury, without entailing the acquisition of social shares, are not considered a reinvested amount for the purpose of the exemption.

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