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V0823-20 13 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gain is generated in the donation of shares if the requirements of Article 20.6 of the ISD Law are met

A person over 65 years of age inquires whether they can apply the capital gains exemption when donating shares of an agricultural company to their children. The DGT clarifies that Article 33.3.c) of the LIRPF applies provided that the requirements of paragraph 6 of Article 20 of the Inheritance and Gift Tax Law are met.

The question raised

Whether the provisions of Article 33.3.c) of the Personal Income Tax Law are applicable to the donation.

The DGT's ruling

In order for there to be no capital gain or loss in gratuitous transfers of shares, the requirements of Article 20.6 of Law 29/1987 must be met. These include that the donor is 65 years of age or older (or incapacitated), that they cease to perform management functions if they held any, and that the donee retains the acquired assets and is entitled to the Wealth Tax exemption for ten years. The requirements of regional regulations are irrelevant for the application of this state article.

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