Example: Onerous transfers of unlisted securities
Mrs. GCA On 01-03-1991 he subscribed 1,500 shares of SA "Beta", which is not listed on the Stock Exchange, for an amount equivalent to 9,000 euros. On 12-21-2000 he acquired 2,000 shares of the same company, paying 25,000 euros for this reason.
On 11-05-2021 it sells 3,000 titles for 66,000 euros. The share capital of SA "Beta" is made up of 12,000 shares, with the results obtained by the aforementioned entity in the last three fiscal years closed prior to 12-31-2021 being 80,000, 60,000 and 40,000 euros, respectively.
The value of the net equity that corresponds to the transferred values resulting from the balance sheet corresponding to the 2020 financial year closed in July 2021 is 21 euros/share.
Determine the capital gain or loss obtained in the event that the taxpayer does not have sufficient proof that the amount of the transfer corresponds to what independent parties would have agreed upon under normal market conditions and taking into account that it has not been carried out since January 1, 2015 transfer of assets to whose gain the ninth transitional provision of the Personal Income Tax Law would be applicable
To determine the capital gain or loss obtained, it is necessary, first of all, to identify the shares sold within the totality of those owned. To do this, the legal criterion must be applied that the shares sold are those that were acquired in the first place (FIFO criterion). That is to say, the 3,000 shares sold correspond to the 1,500 subscribed on 01-03-1991 and 1,500 of those acquired on 12-21-2000.
1. Determination of total capital gain or loss :
|Information||Acquired on 01-03-1991||Acquired on 12-21-2000|
|Number of shares sold (3,000)||1,500||1,500|
|Transmission value (1) (1,500 x 25)||37,500||37,500|
2. Determination of the capital gain generated prior to 01-20-2006 :
Since part of the shares were acquired prior to 12-31-1994, the part of the capital gain generated prior to 01-20-2006 must be determined to apply the reducing or reduction coefficients that proceed.
Profit generated until 01-20-2006: (28,500 ÷ 11,264) x 5,496 (2) = 13,905.89
3. Reduction calculation
Profit generated prior to 01-20-2006 subject to reduction (3)
Maximum limit: 400,000.00
∑ Transfer value of assets with the right to reduction since 01-01-2015: 0
Transfer value of the asset element to which DT9 Law of Personal Income Tax applies = 37,500
Capital gain susceptible to reduction = 13,905.89
Number of years of stay until 12-31-1996: 6 years
Reduction due to abatement coefficients (57.12% s/13,905.89) = 7,943.04
Reduced capital gain
Reduced capital gain (13,905.89 – 7,943.04) = 5,962.85
5. Determination of non-reducible capital gain (generated as of 01-20-2006):
Profit generated at as of 01-20-2006: (28,500 ÷ 11,264) x 5,768 (4) = 14,594.11
6. Determination of computable capital gain :
5,962.85 + 14,594.11 + 18,750.00) = 39,306.96
Notes to the example
(1) Since the taxpayer does not have proof that the amount of the transfer corresponds to the market value, that is, with which independent parties would have agreed under normal market conditions, the transfer value cannot be less than the highest of the following:
- Agreed value in the transmission: 22 euros/share.
- The value of the net equity that corresponds to the values transmitted according to the balance sheet of the last financial year: 21 euros/share.
- At 20 percent of the average of the results of the last three closed fiscal years:
(80,000 + 60,000 + 40,000) ÷ 3 = 60,000
(60,000 x 100) ÷ 20 = 300,000
300,000 ÷ 12,000 = 25 euros/share (Back)
(2) The capital gain generated between the date of subscription of the shares (01-03-1991) and January 19, 2006, both inclusive, is determined by proportionally distributing the capital gain corresponding to said shares (28,500) between the number of days elapsed between the date of subscription and the date of their transmission, which was 11-05-2021 (11,264 days), with respect to the total number of days between the date of subscription of the shares and 01-19-2006, both inclusive (5,496). (Back)
(3) As the maximum applicable limit on the transfer value is 400,000 euros and, in this case, the transfer value of the shares with the right to the application of reducing coefficients is 37,500 euros without it having occurred in fiscal year 2021 (or in the previous two) no other transfer with the right to the application of the ninth transitional provision of the Personal Income Tax Law , the reducing coefficients will be applied to the entire amount of the capital gain generated previously as of 01-20-2006. (Back)
(4) The capital gain generated as of 01-20-2006 is determined by proportionally distributing the capital gain corresponding to said shares (28,500) between the number of days elapsed between the subscription date and the date of transmission of the same (11,264 days), regarding the total number of days between 01-20-2006 and the date of their transmission (11-05-2021), which amounts to 5,768 days. (Back)