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V0699-14 13 March 2014 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del capital mobiliario

Repurchase of preferred shares generates returns on movable capital for Income Tax purposes

The applicant inquires about the tax treatment of the repurchase of preferred shares and the subscription of shares following a FROB resolution. The DGT rules that the transaction generates a return on movable capital based on the difference between the repurchase price and the acquisition value.

The question raised

Tax treatment of these operations under Personal Income Tax.

The DGT's ruling

The repurchase of preferred shares generates a return on movable capital based on the difference between the repurchase price set by the FROB and the acquisition or subscription value. This return constitutes savings income and is attributed to the period in which it becomes due. In the event of a favorable arbitration award, the return is calculated as the difference between the maximum amount to be restored set in the award and the acquisition value of the initial securities.

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