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V2812-17 2 November 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · trust

Trust tax transparency does not apply if the donation is made by the parent company rather than the donor directly

A query was raised regarding whether the donation of shares through a trust allows for the application of the tax reduction for donations of shares in a commercial entity. The DGT ruled that the trust's tax transparency principle cannot be applied because the donation is made by the parent company, not the father.

The question raised

Impact of the existence of a "trust" for the purposes of applying the reduction provided for cases of donation of shares in a commercial entity.

The DGT's ruling

Although relationships within a trust are considered to be carried out directly between contributors and beneficiaries due to tax transparency, this criterion is not applicable if the donation is not made by the original donor, but rather by the parent company holding the shares.

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