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V1344-22 13 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento del trabajo en especie

Possibility of applying 12,000 euro exemption for share issuance to subsidiaries' employees

A Spanish company asked whether the issuance of shares from its French parent company to its employees, with discount and service period requirements, constitutes an exempted non-cash income. The DGT confirms that the conditions for applying the exemption under article 42.3.f) of the Spanish Personal Income Tax Law are met.

The question raised

Question posed: Whether the aforementioned delivery of shares constitutes income from employment in kind and whether the exemption provided for in Article 42.3f) of the LIRPF is applicable.

The DGT's ruling

The delivery of shares of the parent company to the employees of the group companies constitutes income from employment in kind. To apply the exemption of up to 12,000 euros per year, the offer must be made under the same conditions for all employees of the company and contribute to their participation. This requirement is not breached if a minimum seniority is required equally for all. Furthermore, the securities must be held for at least three years and the participation of the employee and their family must not exceed 5 percent.

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