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V2605-14 6 October 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · etve

Societies of an ETVE may claim exemption or deduction for capital gains and exempt income

A consulting entity asks about the ETVE regime, the treatment of prior reserves, and the fiscal impact on its shareholders. The DGT clarifies that social object requirements must be met prior to opting in and details the treatment of dividends and capital gains for resident and non-resident shareholders.

The question raised

The questions raised are described in the body of the response.

The DGT's ruling

The ETVE regime applies to the tax period ending after the communication of the option, provided that the requirements regarding corporate purpose and nominative character are met beforehand. The first profits distributed after the adoption are understood to originate from exempt income. In the case of reserves generated prior to the regime, distributions must follow a proportional criterion based on the origin of the profit. Capital gains on the transfer of ETVE holdings are entitled to the exemption or deduction subject to compliance with the requirements of Articles 21 and 22 of the TRLIS.

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