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V1735-24 15 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gain or loss arises from the donation of shares if Art. 20.6 of the ISD Law requirements are met

A taxpayer inquired whether the donation of company shares to their child could be exempt from Personal Income Tax (IRPF). The DGT ruled that no capital gain or loss will occur provided the requirements of Article 20.6 of the Inheritance and Gift Tax Law are satisfied.

The question raised

Whether the provisions of article 33.3.c) of the Personal Income Tax Law may be applicable to the donation.

The DGT's ruling

In order for there to be no capital gain or loss in the transfer of shares, the requirements of section 6 of article 20 of Law 29/1987 must be met. This is independent of whether the donee applies or not the reduction in the taxable base of the Inheritance and Gift Tax. Likewise, the assets assigned to the economic activity must have been assigned uninterruptedly for at least five years prior to the transfer.

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