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V0923-16 10 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · doble imposición interna

Non-integration and deduction of dividends may apply if prior taxation of the premium is proven

A company has enquired whether it can apply the non-integration of dividends and the deduction for internal double taxation regarding the premium paid when acquiring shares. The DGT has ruled that this is possible if it is proven that an amount equivalent to the dividend was taxed at the level of a previous transferor.

The question raised

Whether, regarding the dividends distributed by Y, the consulting entity may apply the provisions of Article 30.6 of the consolidated text of the Corporate Income Tax Law for the dividends received in the 2014/2015 fiscal year, as well as the provisions of the twenty-third transitional provision of the Corporate Income Tax Law for the dividends it receives from Y in subsequent fiscal years.

The DGT's ruling

For the 2014/2015 dividends, non-inclusion and the deduction under Article 30.6 of the TRLIS are applicable if the dividend corresponds to the premium paid and the taxation of an equal amount by a previous transferor is proven. For subsequent fiscal years, Article 21 of the LIS and DT 23rd apply, allowing non-inclusion and a 100% deduction of the gross tax liability if prior taxation in Corporate Income Tax or Personal Income Tax is substantiated, up to the amount taxed by the transferors until December 31, 2014.

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