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V1727-18 18 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gains or losses shall be recognised on the donation of shares if the requirements of Article 20.6 of the IHT and Gift Tax Act are met

A taxpayer over the age of 65 enquired whether the donation of their company shares is exempt from Personal Income Tax under Article 33.3.c). The Directorate General for Taxes (DGT) ruled that no capital gain or loss will arise, provided that the requirements set out in Article 20.6 of the Inheritance and Gift Tax Act are satisfied.

The question raised

Whether the provisions of Article 33.3.c) of the Personal Income Tax Law are applicable to the donation.

The DGT's ruling

The non-existence of capital gains or losses for the donor in lucrative transfers of shares that meet the requirements of Article 20.6 of Law 29/1987 is estimated. This application is independent of whether the donee applies or does not apply the reduction to the taxable base. Likewise, the requirements established by regional regulations are irrelevant for this purpose.

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