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V2610-21 27 October 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · aportación no dineraria

Wealth tax variations in Personal Income Tax only occur through non-monetary contributions to a company

An individual has enquired whether incorporating a company will result in wealth variations for Personal Income Tax purposes. The Directorate-General for Taxes (DGT) has ruled that this only occurs if non-monetary assets or rights are contributed, which triggers a capital gain or loss.

The question raised

Whether any equity variation occurs in the Personal Income Tax of the taxpayer as a consequence of the incorporation of the company.

The DGT's ruling

The non-monetary contribution of assets to a commercial company implies a variation in the value of the contributor's equity. This variation is classified as a capital gain or loss, calculated as the difference between the acquisition value and the transfer value. The transfer value in non-monetary contributions is the higher amount among the nominal value of the shares (plus share premiums), the market quotation value, or the market value of the contributed asset. If the assets are used for economic activities, the special regime of the Corporate Tax Law could apply.

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