Skip to content
Back to index
V2758-23 10 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reducción de capital

Excessive return of capital contributions may be taxed as income from movable capital

A query was raised regarding the taxation of capital reductions for Personal Income Tax (IRPF) purposes. The Directorate General for Taxes (DGT) clarifies that the return of contributions not derived from undistributed profits will reduce the acquisition value, but any excess will be taxed as income from movable capital.

The question raised

Taxation of capital reduction in Personal Income Tax (IRPF).

The DGT's ruling

The return of contributions that does not derive from undistributed profits shall reduce the acquisition value of the shares until it is annulled. If the amount exceeds said value, the excess is taxed as income from movable capital (similar to a share premium). In securities not admitted to trading, the income is limited to the positive difference between the equity value and the acquisition value. If the return derives from undistributed profits, the entire amount is taxed as income from movable capital.

Book your free first meeting