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Form 100. 2019 Personal Income Tax return

Capital reduction

When the reduction of capital, whatever its purpose, results in the amortisation of securities or holdings, the first acquired securities or holdings will be considered as amortized, and their acquisition value will be proportionally distributed among the remaining homogeneous securities that remain in the taxpayer's assets.

When the reduction of capital does not affect all the securities or holdings owned by the taxpayer equally, it shall be understood as referring to those acquired in the first place.

When the capital reduction is for the purpose of repaying contributions, the amount of the capital or the normal market value of the goods or rights received will reduce the acquisition value of the securities concerned, in accordance with the rules of the previous paragraph, until they are cancelled. The excess that may result will be taxed as the return on movable capital from the participation in the equity of any type of entity, in the form provided for the distribution of the share premium, unless this reduction in capital comes from undistributed profits, in which case the all amounts received under this heading shall be taxed in accordance with the provisions of section a) of article 25. 1 A) of the Act. For these purposes, capital reductions, whatever their purpose, will be considered to affect the part of the capital stock that does not come from undistributed profits, until they are cancelled.


When, prior to the transfer of securities or holdings not admitted to trading on any of the official secondary markets of Spanish securities, the above rules will be applied with the following specialities, due to a reduction in the capital implemented by means of a reduction in the nominal value that does not affect all the taxpayer's current shares or securities:

  1. The transfer value shall be considered as the value that would correspond according to the nominal value resulting from the application of the above rules.

  2. If the taxpayer has not transferred all of their securities or holdings, the positive difference between the corresponding transfer value the nominal value of the securities or participations actually transferred and the transfer value referred to in the previous paragraph shall be less than acquisition value of the remaining securities or homogeneous holdings until they are cancelled. The excess that may result will be taxed as a capital gain.