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Internal Double Taxation: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Refined position High confidence 32 rulings · 2014–2024

Current position

Dividends received by a shareholder are classified as full returns on movable capital and are included in the savings tax base. There is no exemption for these dividends following their suppression in 2015. Likewise, it is not possible to deduct the Corporate Tax (IS) paid by the company, as the Personal Income Tax (IRPF) regulations do not provide for such a deduction for natural persons.

The DGT's position has shifted from analyzing the mechanics of the internal double taxation deduction and fiscal neutrality in capital reductions, to focusing on the non-existence of exemptions and deductions for natural persons. Following the 2015 reform, the doctrine confirms that dividends are fully taxed in the savings base without the possibility of offsetting the tax paid by the company.

Turning points

  1. V0145-15

    Establishes that income from reserves constituted through capital reduction under fiscal neutrality does indeed grant the right to the internal double taxation deduction.

  2. V0923-16

    Marks the regulatory transition by applying Article 21 of the Law on Corporate Tax (LIS) and the 23rd Transitional Provision for fiscal years after 2015, allowing for non-integration and a 100% deduction of the total tax liability if prior taxation is proven.

Analysis based on 27 of 32 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
V0660-21 22 Mar 2021

Eligibility for the DT 23rd LIS deduction on dividends relating to paid goodwill

SG de Impuestos sobre las Personas Jurídicas
doble imposición internasobreprecioexención de dividendosdisposición transitoriagrupo fiscal LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 71
Affects CompanyExpat · Non-residentIndividual
V4765-16 10 Nov 2016

Possible deferment of double taxation deductions in first full quota year

SG de Impuestos sobre las Personas Jurídicas
consolidación fiscaldoble imposición internadoble imposición internacionalcuota íntegradeducciones pendientes LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 31LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 32
Affects CompanyExpat · Non-residentIndividual

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