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V0516-22 14 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reducción de capital

Capital reduction and return of contributions may be treated as capital gains

Societies that acquired shares through a share swap seek clarification on the tax treatment of a capital reduction involving the return of contributions. The DGT explains how to determine the acquisition value and when the excess of the return is treated as capital gains.

The question raised

Tax treatment of said operation in the Personal Income Tax of the partners.

The DGT's ruling

The return of contributions that does not derive from undistributed profits reduces the acquisition value of the shares until its annulment. If a positive difference exists between the proportional equity and the acquisition value, the amount received is considered income from movable capital up to said limit. The excess over that limit reduces the acquisition value or, if it reaches zero, is also taxed as income from movable capital. In the case of shares obtained through a securities exchange, the value and acquisition date of the delivered securities are maintained.

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