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V1140-14 23 April 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo en especie

Share awards may be exempt from income tax if remuneration policy requirements are met

A query was raised regarding whether the granting of additional shares to employees meets the requirements for the annual exemption of up to 12,000 euros. The DGT indicates that for the offer to be considered part of the general remuneration policy, the conditions must be applied equally to the entire group and cannot be based on individual designations.

The question raised

Whether, in the case of employees subject to Personal Income Tax (IRPF), the non-taxation of up to 12,000 euros annually is applicable to the delivery of additional shares, specifically due to meeting the requirement of having been offered within the group's general remuneration policy and contributing to employee participation in the company.

The DGT's ruling

The delivery of shares is not taxed as income in kind up to 12,000 euros annually if the requirements of the RIRPF are met. For the offer to be part of the general remuneration policy, the conditions must be identical for the entire collective without individual contingencies. If the beneficiaries are designated individually by the company, it is not considered part of the general remuneration policy and the delivery constitutes income in kind. Failure to maintain the securities for three years requires the filing of a supplementary tax return.

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