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V0728-15 6 March 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reserva por prima de emisión

Distribution of reserves via issuance of shares and cash treated as return of capital

The DGT determines that these operations constitute a single unit amounting to a distribution of reserves.

The question raised

Taxation of the amounts received by natural person shareholders subject to IRPF as a consequence of the aforementioned operation.

The DGT's ruling

The issuance of bonus shares and the simultaneous reduction of capital are considered a single operation of distribution of reserves via share premium. The amount obtained shall reduce the acquisition value of the shares, and the excess shall be taxed as income from movable capital. If part of the distribution is in kind, the amount shall be the market value of the shares received. This operation does not benefit from the 1,500 euro exemption provided for in Article 7.y) of the LIRPF.

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