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V2543-22 13 December 2022 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · exención de dividendos

Exemption for transfer of shares may apply if conditions met

The query asks whether the Corporate Income Tax exemption can be applied to positive income from the transfer of shares in a resident entity. The DGT states that the exemption applies if participation, holding requirements are met and no exclusion circumstances apply.

The DGT's ruling

The positive income from the transfer of shares shall be exempt if the requirements of a minimum 5% holding and an uninterrupted holding period of one year are met. In the case of resident entities, it must be verified that the exclusion scenarios under paragraph 5 of Article 21.1 of the LIS are not incurred, such as the status of a holding company. Furthermore, the amount of the exempt income shall be reduced by 5% for management expenses.

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