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V2193-24 14 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital mobiliario

No tax on IRPF for dividends from regularised profits

The taxpayer, currently resident in Spain, was a non-resident during 2017-2020. The Administration regularised those years by directly attributing the profits of their non-resident company as own income, taxed in IRNR. Now, the company is distributing those same profits as dividends. The DGT rules that no IRPF tax is due on these amounts, as they have already been taxed in IRNR.

The question raised

Whether the taxpayer must pay tax on the aforementioned dividends in their Personal Income Tax.

The DGT's ruling

When a company's profits have been adjusted by the Tax Administration and imputed directly to the shareholder, and the shareholder has already paid tax on them under the Non-Resident Income Tax (IRNR), their subsequent distribution as dividends does not create a new tax liability under the Personal Income Tax (IRPF). The tax classification granted by the adjustment prevails, preventing double taxation on the same income.

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