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V2400-23 6 September 2023 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · exención de dividendos

Dividends and capital gains from share transfers may be exempt if conditions in LIS article 21 are met

A company wishes to sell its shares in another entity to its parent and asks whether the capital gain and dividends are exempt. The DGT states that positive income from the transfer may be exempt if the conditions of participation and temporality in article 21 of the LIS are met.

The question raised

1. Confirmation that the income revealed in company V with the sale of shares in company B is exempt.

The DGT's ruling

The positive income from the transfer of shares may be exempt if the requirements of Article 21.1 of the LIS are met and the cases in paragraph 4 do not apply. Dividends received by the partner could also benefit from the exemption if the participation and holding requirements are met. If the transaction occurs in fiscal years starting after January 1, 2021, the exempt income shall be reduced by 5% for management expenses. These amounts shall not be subject to elimination in the consolidated tax base of the tax group.

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