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V1396-17 5 June 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Reinvestment exemption applicable to capital gain from company dissolution for retirees over 65

A taxpayer over 65 asks whether capital gain from company dissolution and liquidation can benefit from the reinvestment exemption. The DGT confirms this is possible if the Regulation's requirements are met.

The question raised

Possible application to the capital gain obtained as a consequence of the dissolution and liquidation of the company in which the individual participates of the exemption provided for in Article 38.3 of the Personal Income Tax Law.

The DGT's ruling

The dissolution and liquidation of a company generates a capital gain or loss for the partners based on the difference between the value of the liquidation quota or the market value of the assets received and the acquisition value of the share. This gain may be exempt from taxation if the taxpayer is over 65 years of age and allocates the total amount obtained to the establishment of an insured life annuity within a period of six months. To apply the exemption, the conditions established in Article 42 of the Personal Income Tax Regulations must be met.

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