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V3339-16 15 July 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · exención de dividendos

Dividends may be exempt if ownership percentage or acquisition value requirements are met

A query was raised regarding the requirements for dividend exemption under Corporate Tax. The DGT explains that exemption depends on holding at least 5% of the capital or having acquired the holding for more than 20 million euros.

The question raised

Analysis of compliance with the requirements established in Article 21.1.a) of the LIS

The DGT's ruling

For the dividend exemption, the holding must be at least 5% or have an acquisition value exceeding 20 million euros, maintained uninterruptedly during the year prior to the distribution. If the investee entity derives more than 70% of its income from capital income, the exemption requires that indirect holdings in those entities also meet the requirements. In the specific case of entity C, as it holds less than 5%, it is required that the acquisition value exceeds 20 million euros.

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