Skip to content
Back to index
V0408-16 2 February 2016 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · diferimiento por reinversión

Reinvestment deferral for foreign UCIs may apply if transactions are conducted through a distributor registered with the CNMV

A Spanish branch of a foreign entity has requested clarification on whether its clients can apply the reinvestment deferral regime for foreign Collective Investment Schemes (UCIs) when securities are held in a custody account at the foreign head office. The Directorate-General for Tax (DGT) has ruled that this is possible provided the distributor acts as the principal, necessary, and exclusive intermediary in all transactions.

The question raised

Application of the deferral regime for reinvestment between units and shares of collective investment institutions provided for in Article 94 of Law 35/2006, of November 28, on Personal Income Tax.

The DGT's ruling

To comply with Article 94.2.a.1 of the Personal Income Tax Law (LIRPF), operations of acquisition, subscription, transfer, and redemption must be carried out through marketing entities registered with the CNMV. This requires that the taxpayer directs the order to the marketing entity and that its intervention is direct, acting as the primary, necessary, and exclusive intermediary. In the specific case at hand, as it is contractually agreed that the depository entity shall not execute any order without the exclusive mediation of the marketing branch, the requirement is deemed to be met.

Book your free first meeting