Skip to content
Back to index
V1085-14 14 April 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gains or losses on the donation of shares if ISD requirements are met

The taxpayer asks whether the donation of shares in their family business allows for the avoidance of capital gains tax under Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) rules that no capital gain or loss applies if the requirements for the reduction under Article 20.6 of the Inheritance and Gift Tax Law are satisfied.

The question raised

Whether the provisions of Article 33.3.c) of the Personal Income Tax Law are applicable to the donation, which establishes the non-existence of capital gains or losses for the lucrative transfers of companies or shares referred to in paragraph 6 of Article 20 of the Inheritance and Gift Tax Law.

The DGT's ruling

The non-existence of capital gains or losses in lucrative transfers of shares is estimated if the requirements of paragraph 6 of Article 20 of Law 29/1987 are met. This application is independent of whether the donee applies the reduction in their own tax return. Furthermore, the donee is subrogated into the position of the donor regarding the values and dates of acquisition.

Book your free first meeting