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V0703-18 15 March 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · amortización de participaciones

Sale of shares to the company for redemption is taxed as a capital gain or loss

A shareholder requested clarification on the tax treatment of selling their shares to the company for redemption through a capital reduction. The DGT ruled that, as it affects all of their shares, the rule regarding the separation of shareholders applies.

The question raised

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

The DGT's ruling

When the acquisition of shares by the company for its redemption affects all shares held by a partner, Article 37.1.e) of the Personal Income Tax Law (LIRPF) applies. This rule establishes that the difference between the value of the social liquidation quota or the market value of the assets received and the acquisition value shall be considered a capital gain or loss. This criterion is applied as it is a more specific valuation rule than that of capital reduction with return of contributions.

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