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V2827-17 2 November 2017 · 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 query was raised regarding whether the donation of shares in a family business is exempt from Income Tax (IRPF). The DGT ruled that no capital gain shall be recognised provided 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 in the 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 in the taxable base of the Inheritance and Gift Tax. Likewise, the requirements established by regional regulations are irrelevant.

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