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V2447-20 16 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Gains from sale of shares in a Bolivian company taxable only in Spain under Double Taxation Treaty

A resident in Spain sought clarification on whether gains from the sale of shares in a Bolivian company should be taxed in Spain. The DGT has ruled that, pursuant to the Double Taxation Treaty, the taxing rights lie exclusively with Spain and provides guidance on how to value such shares.

The question raised

Whether the capital gain obtained from the sale of their shareholding in the Bolivian "company A" forms part of the savings tax base of the Personal Income Tax (IRPF) subject to taxation in Spain.

The DGT's ruling

As it concerns the alienation of rights other than real estate, vessels, or aircraft, the gain may only be subject to taxation in the State of residence of the transferor, pursuant to Article 13.4 of the Spanish-Bolivian Convention. The transfer value of unlisted shares shall be the agreed price if it is proven to be at market value; otherwise, the valuation rules of Article 37.1.b) of the Personal Income Tax Law (LIRPF) shall apply. The acquisition value of shares obtained through non-monetary contributions shall be determined in accordance with Article 37.1.d) of the LIRPF.

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