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V0424-20 24 February 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Capital gains from share sales may be recognised as variable payments are received

A taxpayer sells shares in an unlisted company for a price consisting of a fixed component and a variable component contingent on future events. The Tax Agency indicates that the price may be estimated or the gain recognised as payments are collected.

The question raised

Tax treatment of said sale in the Personal Income Tax.

The DGT's ruling

As the total price for the variable component is unknown, the taxpayer may estimate the transfer value and file their tax return. If the actual amount differs from the estimate, a regularization must be carried out through a supplementary return or rectification. Alternatively, as it is a transaction with a deferred price, the taxpayer may opt to impute the income in each fiscal year as the payments are collected, pursuant to Article 14.2 d) of the Personal Income Tax Law.

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