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V1880-22 9 August 2022 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · exención de dividendos

Requirements for exemption from Corporate Tax on transfer of shares

The inquiry asks whether the transfer of shares in a resident entity may be tax-exempt. The DGT responds that this is possible if the requirements regarding shareholding, ownership, and the entity not being a patrimonial entity are met.

The DGT's ruling

The positive income from the transfer of shares shall be exempt if the requirements of a minimum 5% holding and a holding period of at least one year are met. Furthermore, the requirement of taxation abroad must be fulfilled if the entity is a non-resident and does not fall under the exclusion cases of paragraph 5. The exemption shall not apply if the investee entity has the status of a patrimonial entity, and the exempt amount shall be reduced by 5% for management expenses.

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