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V3030-21 3 December 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gains tax on the donation of shares if Article 20.6 of the IHT and Gift Tax Act requirements are met

A taxpayer over 65 has enquired whether the donation of their company shares to their children may be exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that the non-taxability of capital gains will apply provided the requirements set out in Article 20.6 of the Inheritance and Gift Tax Act are satisfied.

The question raised

Whether the provisions of Article 33.3.c) of the Personal Income Tax Act may be 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 Article 20.6 of Law 29/1987 must be met. This is independent of whether the donee applies or does not apply the reduction to the taxable base. The requirements of regional regulations are irrelevant for this case of Personal Income Tax (IRPF). If the spouse is not over 65 years of age or does not have a permanent disability, they shall not be able to apply this exemption.

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