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V2733-23 6 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · prima de emisión

Distribution of share premium reduces acquisition value; excess taxed as income from movable capital

A query was made regarding the Personal Income Tax (IRPF) treatment for shareholders of a limited company that decides to distribute the share premium of its shares. The Directorate General for Taxes (DGT) clarifies that the amount received reduces the acquisition value, and only the excess is taxed as income from movable capital.

The question raised

Tax treatment in the Personal Income Tax (IRPF) of the shareholders regarding the distribution of the share premium.

The DGT's ruling

The amount obtained from the distribution of the share premium shall reduce, until its cancellation, the acquisition value of the shares, with the excess being taxed as income from movable capital without withholding. In securities not admitted to trading, the income is limited to the positive difference between the value of the equity at the end of the last closed financial year and the acquisition value. As shares were acquired at different times and prices, the calculation of the income must be carried out separately for each one.

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