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V1974-18 2 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reducción de capital

Capital reduction through asset and cash transfers treated as capital gains or losses

A shareholder has requested clarification on the taxation of a capital reduction in which the company acquires their shares for cancellation by providing assets and cash. The Directorate General of Taxes (DGT) has ruled that, as it affects all of their shares, the shareholder separation regime applies.

The question raised

Tax treatment of said operation in the Personal Income Tax of the taxpayer.

The DGT's ruling

As the acquisition of shares for their amortization affects all shares held by a partner, the special valuation rule of Article 37.1.e) of the Personal Income Tax Law applies. This rule establishes that the difference between the market value of the assets received and the acquisition value of the share shall be considered a capital gain or loss. This criterion is applied due to its more specific nature regarding the separation of partners.

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