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V0410-16 2 February 2016 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · participaciones preferentes

Special tax treatment option for the compensation of preferred shares in Personal Income Tax

The taxpayer enquires about the tax treatment of compensation received under an agreement regarding preferred shares and whether legal costs can be accounted for as capital losses. The DGT explains that taxpayers may opt for special rules for the quantification of income and that legal costs do not constitute capital losses.

The question raised

1. Tax treatment of these operations in the Personal Income Tax.

The DGT's ruling

Taxpayers receiving compensation through agreements regarding preferred shares may opt for the general rules or the special treatment provided in the forty-fourth additional provision of Law 35/2006. Under this special regime, the repurchase, subscription, or exchange has no tax effects, and the compensation received generates income from movable capital calculated as the difference between the compensation (increased by previous transfers) and the initial investment. On the other hand, legal expenses cannot be accounted for as capital losses as they are considered consumption income.

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