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V0469-22 10 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gains or losses shall be recognised on the donation of shares if the requirements of Art. 20.6 of the ISD Law are met

A taxpayer over the age of 65 has requested clarification on the tax treatment of donating shares in a limited company to their children. The DGT indicates that, provided the requirements of Article 20.6 of the Inheritance and Gift Tax Law are satisfied, no capital gain or loss shall be deemed to have occurred for the donor.

The question raised

Tax treatment of the aforementioned donation in the taxpayer's Personal Income Tax.

The DGT's ruling

The transfer of social shares to descendants shall not generate a capital gain or loss for Personal Income Tax purposes if the requirements of paragraph 6 of Article 20 of Law 29/1987 are met. To this end, the donor must be 65 years of age or older (or have a permanent disability) and, if they hold management positions, they must relinquish them. It is irrelevant whether the donee applies or not the reduction in Inheritance and Gift Tax, provided that the requirements of said law are met.

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