Delisting from the stock exchange does not automatically generate a capital loss for Personal Income Tax (IRPF)

The situation of companies that stop trading on official secondary markets has raised doubts regarding the possibility of computing a capital loss for Personal Income Tax (IRPF). Recently, the Dirección General de Tributos (DGT) has issued a ruling that precisely delimits when this taxable event occurs.

What the DGT has ruled

The DGT has established that the mere exclusion of a company from an official secondary market does not, in itself, imply the existence of a capital loss for its shareholders. The body points out that, in order to recognize a loss pursuant to Article 37.1, e) of the IRPF Law, it is mandatory that the dissolution and subsequent liquidation of the company take place.

In this way, the technical criterion indicates that the tax period in which said loss must be integrated will be the one in which the liquidation is formalized, the moment at which the real change in assets is considered to occur. The resulting amount will be integrated into the savings tax base.

What this means for you

If you are an individual shareholder of a company that stops trading, you cannot declare a capital loss in your tax return based solely on the fact that the shares no longer trade on an official market. The loss of market value or the lack of liquidity of the securities is not equivalent to a capital loss for tax purposes.

This criterion directly affects individuals who hold shares and expect to compute a lower value for their assets due to the entity's delisting. The regulations require the corporate structure to be extinguished for the economic impact to be tax-recognizable.

What should be done

In the event of a company's exclusion from a secondary market, it is necessary to analyze the legal situation of the entity. If the intention is to recognize a capital loss, it must be verified whether there is an ongoing dissolution and liquidation process. It is fundamental to correctly document the moment of liquidation to determine the correct tax period and ensure that the integration into the savings base complies with current regulations.