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V2767-23 10 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IS | IRPF | IVA | IRNR | ISD | IP | ITPAJD | OTRO · reducción en la base imponible

Reductions on share donations and IRPF exemptions may apply if LISD requirements are met

The taxpayer enquires whether they can apply the reduction for the donation of shares and the exemption from capital gains tax under IRPF. The DGT states that this requires compliance with the requirements of Article 20.6 of the LISD, which includes exemption from Wealth Tax.

The question raised

Whether the provisions of article 20.6 of the Inheritance and Gift Tax Law and article 33.3.c) of the Personal Income Tax Law may be applicable to the donation.

The DGT's ruling

To apply the 95% reduction to the taxable base of the donation, it is a necessary condition that the shares are exempt from Wealth Tax. Regarding Personal Income Tax, there shall be no capital gain or loss if the requirements of article 20.6 of the Inheritance and Gift Tax Law are met and the assets have been used for economic activity for at least five years. If the assets are community property, two independent settlements must be carried out, one for each spouse.

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