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V1867-22 5 August 2022 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · exención de dividendos

Exemption possible for share transfer if conditions met

The query asks whether an entity can apply the Corporate Income Tax exemption for positive income from the sale of shares in entity X. The DGT states that the exemption is available if the minimum shareholding, holding period, foreign taxation (if applicable), and exclusion circumstances are met.

The DGT's ruling

The positive income from the transfer of shares shall be exempt if the requirement of holding at least 5% uninterruptedly during the year prior to the transfer is met. In the case of non-resident entities, the requirement of taxation abroad at a nominal rate of at least 10% must be met for all fiscal years of ownership. Furthermore, the exemption shall not apply if the entity is considered a patrimonial entity or if other cases of exclusion under paragraph 5 occur. The exempt amount shall be reduced by 5% for management expenses.

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