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V2919-20 29 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · transmisión lucrativa

No capital gains or losses on the donation of shares if requirements of Article 20.6 of the ISD Law are met

An individual over 65 wishes to donate their company shares to their daughters and step down from management roles. The DGT clarifies that no capital gains tax will apply for Income Tax purposes if the requirements of 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 and the acquisition value of the shares received by the donees.

The DGT's ruling

The non-existence of a capital gain or loss for the donor is estimated to occur if the requirements of paragraph 6 of Article 20 of Law 29/1987 are met. In this case, the donees shall be subrogated into the position of the donor regarding the value and the date of acquisition of the shares. To this end, it is irrelevant whether the donee applies or does not apply the reduction in the Inheritance and Gift Tax or the regional regulations.

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