Determining the acquisition value of shares for Personal Income Tax (IRPF)

The correct determination of the acquisition value of assets is a critical aspect when calculating the capital gain or loss derived from the transfer of shares. An incorrect valuation can lead to an erroneous settlement of Personal Income Tax (IRPF).

What the DGT has ruled

Through a recent binding ruling, the Directorate General of Taxes (DGT) has specified that the acquisition value of shares is constituted by the actual amount for which the purchase was made, plus the expenses and investments inherent to said operation. The Administration emphasizes that this actual amount must be proven by the taxpayer through means of evidence admitted by law. Likewise, it is noted that the assessment and validity of such evidence fall upon the management and inspection bodies of the Tax Administration.

What it means for you

For individuals who hold interests in companies, this criterion implies that a mere estimate of the cost is not sufficient. The taxpayer must possess documentation that supports the actual disbursement made at the time of purchase. This criterion directly affects the calculation of the taxable base in the income tax return, as an undervalued acquisition value will artificially increase the capital gain, thereby increasing the tax burden.

• The acquisition value includes the purchase price plus inherent expenses.
• The burden of proof regarding the actual amount lies with the taxpayer.
• The Administration has the authority to assess the suitability of the evidence provided.

What you should do

It is fundamental to keep and organize all documentation that certifies the acquisition of the shares. This includes deeds, bank transfer receipts, purchase and sale agreements, and any document that proves the additional expenses linked to the operation. Should doubts arise regarding the available documentation or the correct application of the IRPF Law and the General Tax Law, it is necessary to assess each particular situation to ensure that the cost reflected in the tax return is the one required by the regulations.