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V2886-14 29 October 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · mayor valor de adquisición

Distribution of an amount equivalent to the highest value of shares does not generate income for Corporate Tax

A query was raised regarding whether Company X must pay tax on income received from Company A, amounting to the increase in the value of its shares resulting from a tax inspection adjustment. The DGT ruled that such a distribution constitutes a decrease in the value of the shareholding without generating taxable income.

The question raised

Consideration of the higher tax value in company X of its shares in company A.

The DGT's ruling

If company A distributes to company X an amount equal to the higher acquisition value of the shares in company A (corresponding to the valuation adjustment carried out by the Inspection), such distribution shall entail a decrease in the value of company X's shareholding in company A. Consequently, no income shall be generated to be included in the taxable base of company X's Corporate Income Tax.

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