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V1039-17 28 April 2017 · SG de Fiscalidad Internacional Criterion in force
IRNR · dividendos

No retention applicable on dividends paid by Spanish company to its Dominican parent under certain conditions

A Spanish company pays dividends to its parent company in the Dominican Republic, which holds 99% of the capital. The tax authority determines that, as the conditions of the double taxation avoidance treaty are met, the dividends are exempt from Spanish taxation.

The question raised

Cuestión planteada Tributación de los dividendos en España y, en su caso, tipo de retención aplicable.

The DGT's ruling

Si la matriz dominicana posee directamente al menos el 75% del capital de la sociedad española y no realiza actividad empresarial mediante un establecimiento permanente en España vinculado a dicha participación, se aplica la exención del Convenio Hispano-Dominicano. Al estar la renta exenta por el convenio, no procede practicar retención según el artículo 31.4 del TRLIRNR.

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