The sale of shares represented by book-entry securities is taxed in the fiscal year of their accounting registration

Determining the exact moment when a capital gain derived from the sale of securities must be taxed is a critical aspect of complying with tax obligations. Recently, the Dirección General de Tributos (DGT) has specified the criteria applicable to shares represented by book-entry securities.

What the DGT has resolved

The query concerned the fiscal year to which the gain obtained from the sale of shares should be attributed. The DGT has established that the capital gain or loss must be attributed to the tax period in which the change in assets occurs due to the transmission of the securities.

In the specific case of securities represented by book-entry, the administration points out that the transmission is materialized through the accounting transfer. Consequently, the gain must be attributed to the fiscal year in which the entry or registration of said transmission has been carried out in the corresponding book-entry system.

What this means for you

If you are an individual operating with securities represented by book-entry, the timing of your tax obligation does not necessarily depend on the day a contract is signed, but rather on the effective registration of the operation in the securities accounting system. This implies that:

• The applicable fiscal year will be the one in which the accounting transfer is recorded.
• The regulations of the Securities Markets and Investment Services Law determine the nature of this transmission.
• Correctly identifying the registration date is fundamental to avoid errors in your Personal Income Tax (IRPF) declaration.

What you should do

To ensure compliance with regulations according to the Law on Personal Income Tax (IRPF) and the General Tax Law, it is necessary to:

• Verify the exact date of the accounting transfer in the statements or certificates provided by the investment entity.
• Ensure that the declared fiscal year coincides with the registration of the book-entry.
• Evaluate each sale of securities individually to determine its impact on the tax period.