Skip to content
Back to index
V3159-17 5 December 2017 · SG de Fiscalidad Internacional Criterion in force
IRNR · exención de dividendos

The exemption of dividends in the Non-Resident Income Tax may be applied if the parent company has valid economic reasons despite having shareholders outside the EU

A Spanish company inquired whether it could apply the dividend exemption under the Parent-Subsidiary Directive to its Dutch parent company, given that the latter is owned by a Saudi Arabian entity. The DGT ruled that the exemption is applicable provided that the incorporation and operations of the parent company are driven by valid economic motives and substantive business reasons.

The question raised

Question raised Application of the exemption under article 14.1.h) of the Non-Resident Income Tax Law regarding the profits distributed by the applicant to BV.

Email
Contact