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V2700-21 8 November 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gains or losses arise from the donation of shares if Art. 20.6 of the ISD Law requirements are met

A taxpayer inquired whether they could apply the non-subjectivity rule for capital gains tax under Personal Income Tax (IRPF) when donating company shares to their children. The Directorate General of Taxes (DGT) ruled that the absence of a capital gain or loss will apply provided that the requirements set out in 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 are 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 gratuitous 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. Likewise, the requirements established by regional regulations for this purpose are irrelevant.

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