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V0553-20 9 March 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · prima de asunción

Dividends following a premium for share issuance distribution will reduce acquisition value subject to a specific limit

A query was raised regarding the taxation of dividends paid after a distribution from the share premium reserve. The DGT clarifies that such dividends will reduce the acquisition value of the shares, but only up to the limit of the income from movable capital previously accounted for due to the premium distribution.

The question raised

Taxation of a subsequent distribution of a dividend charged to reserves derived from profits.

The DGT's ruling

In the distribution of a premium for the assumption of shares not admitted to trading, if a return on movable capital was generated according to the third paragraph of art. 25.1.e) of the LIRPF, subsequent dividends or shares in profits shall reduce the acquisition value. This reduction is limited to the amount of the returns on movable capital that were computed at the time for said shares. As they are dividends under art. 25.1.a) of the LIRPF, they are subject to withholding tax.

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