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V1181-17 17 May 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · participaciones preferentes

Tax refunds for IRPF may be requested for interest on voided preferred shares

The inquirer asks about the tax implications following the judicial annulment of preferred shares. The DGT explains how to rectify tax returns for interest already paid and how the resulting statutory and compensatory interest are taxed.

The question raised

Tax implications in the Personal Income Tax regarding the declaration of nullity.

The DGT's ruling

Interest on preferred shares declared null and void may be requested through the rectification of the tax return, even if the right to a refund has expired. Legal interest resulting from the nullity is taxed as capital gains included in the savings tax base, attributed to the period in which the judgment becomes final. Procedural default interest also constitutes capital gains, but their attribution occurs when they are quantified and their payment is agreed upon. The payment of legal costs constitutes a capital gain due to its restorative nature.

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