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V1397-20 13 May 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · exención

Exemption possible for transfer of shares if participation and residency criteria met, except where the company is a patrimonial entity

An entity asked whether it could claim the corporate income tax exemption on the capital gain from the sale of shares in company X. The DGT replied that this is possible if the percentage of ownership and residency requirements of the holding company are met, noting a possible limitation if company X is a patrimonial entity.

The question raised

Whether it would be appropriate to apply the exemption established in Article 21 of Law 27/2014, of November 27, on Corporate Income Tax, to the capital gain obtained in the transfer of shares of entity X.

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