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V1071-19 20 May 2019 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · exención

Exemption on the transfer of shares may apply if Article 21.3 LIS requirements are met

A consulting entity asks whether the sale of shares in four entities in which it holds more than 80% may be exempt from Corporate Tax. The DGT rules that the exemption applies provided that the requirements regarding shareholding percentage, holding period, and tax residence are satisfied.

The question raised

Whether the described operation of the transfer of said shares may apply the exemption of Article 21.3 of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

The positive income from the transfer of shares shall be exempt if the minimum shareholding percentage and the uninterrupted holding during the previous year are met. In the case of entities resident in Spain, it is not necessary to meet the requirement of taxation abroad. The exemption shall apply provided that the remaining requirements required by Article 21 of the LIS are met.

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