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V2396-23 6 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia o pérdida patrimonial

Exclusion from listing does not automatically result in a capital loss

A taxpayer inquired whether a capital loss could be recognised for Income Tax (IRPF) purposes following the delisting of shares and the conclusion of insolvency proceedings. The Directorate General of Taxes (DGT) ruled that a loss can only be accounted for if the company is dissolved and liquidated.

The question raised

Whether a capital loss may be reflected in the Personal Income Tax (IRPF).

The DGT's ruling

The exclusion from trading on an official secondary market does not automatically generate a capital loss for the shareholders. For a loss to exist under Article 37.1, e) of the Personal Income Tax Law (LIRPF), the dissolution and liquidation of the company must have previously taken place. The tax period shall be that in which said liquidation occurs, and the circumstance must be substantiated with evidence admitted in law.

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