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V1429-14 29 May 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · socimi

SOCIMI must apply a 19% special tax if dividends to shareholders with over 5% ownership are taxed at less than 10%

The application of a 19% special tax in a SOCIMI is queried based on shareholders' tax rates and the fiscal treatment of a capital increase by credit offset and share issuance premium distribution.

The question raised

1. Confirmation that the aforementioned criterion is applicable to company S in relation to the dividends distributed to Luxco under the terms indicated above.

The DGT's ruling

The SOCIMI shall be subject to a special tax of 19% on dividends paid to shareholders with a holding of 5% or more if they are taxed in their jurisdiction at a rate lower than 10%. For non-resident shareholders, both the withholding tax in Spain and the tax rate in their country of residence must be considered, reduced by double taxation relief. In a capital increase through the offsetting of credits, no taxable income is recognized even if there is an accounting gain, therefore it is not necessary to distribute said income. The distribution of share premium has no tax effect if it does not generate an accounting result.

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