f) Delivery to employees of shares or interests in the company itself or in other group companies

Regulations: Art. 43 Regulation Income Tax

• The delivery to active workers, free of charge or at a price below the normal market price, of shares or interests in the company itself or in other groups of companies is exempt from Personal Income Tax ##2##, in the part that does not exceed, for the total amount delivered to each worker, 12,000 euros per year, provided that the offer is made under the same conditions for all workers of the company, group or subgroup of companies.

• In the event that the company in which the worker provides his/her services is part of a group of companies in which the circumstances provided for in article 42 of the Commercial Code occur, the beneficiaries may be the workers of the companies that form part of the same group with the following conditions :

  1. When shares or interests in a group company are delivered, the beneficiaries may be the employees of companies that form part of the same subgroup.

  2. When shares or interests in the parent company of the group are delivered, the beneficiaries may be the employees of any company in the group.

• In both cases, the delivery may be made either by the company in which the employee provides services, or by another company belonging to the group or by the public entity, state company or public administration that owns the shares.

• In order for the delivery of the aforementioned shares or participations to be exempt in kind following requirements must also be met:

  • That the offer is made under the same conditions for all employees of the company and contributes to their participation in the company . In the case of groups or subgroups of companies, the aforementioned requirement must be met in the company to which the employee to whom the shares are delivered provides services.

    However, this requirement will not be deemed to have been breached when, in order to receive the shares or interests, the workers are required to have a minimum seniority, which must be the same for all of them, or that they are taxpayers under the IRPF .

  • That each of the workers, together with their spouses or relatives up to the second degree, do not have a participation , direct or indirect, in the company in which they provide their services or in any other company in the group, greater than 5%.

  • That the remain valid for at least three years

    Failure to comply with this deadline will result in the worker being required to submit a supplementary self-assessment, with the corresponding late payment interest, within the period between the date on which the requirement is not met and the end of the regulatory declaration period corresponding to the tax period in which the failure occurs.

Attention: the acquisition value of the shares delivered to the employee that were exempt performance in kind, for the purposes of calculating the capital gain obtained from their subsequent sale, will be the same as if said delivery had been taxed as performance in kind, being in both cases the normal market value of said shares at the time of their delivery which, in the case of shares of a listed company, is their market value.