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V2626-24 19 December 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gains or losses on donation of shares if Art. 20.6 LISD requirements are met

A shareholder and director intends to donate company shares to their children upon retirement. The DGT has ruled that no capital gain or loss will be recognised for Personal Income Tax (IRPF) purposes, provided the requirements of Article 20.6 of the Inheritance and Gift Tax Law are satisfied.

The question raised

Whether the provisions of Article 33.3.c) of the Personal Income Tax Law may be applicable to the donation.

The DGT's ruling

In order for there to be no capital gain or loss for Personal Income Tax purposes arising from the transfer of shares, the requirements of paragraph 6 of Article 20 of Law 29/1987 must be met. This is independent of whether the donee applies or not the reduction to the taxable base of the Inheritance and Gift Tax. The requirements include that the donor is 65 years of age or older and that, if they perform management functions, they cease to perform and receive them following the transfer.

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