A. Capital reduction and distribution of the share premium carried out after September 23, 2010 by variable capital investment companies (SICAV)
Regulations: Art. 94.1.c) and d) and 94.2.b) Law Personal Income Tax
a. In cases of capital reduction of variable capital investment companies whose purpose is the return of contributions , the amount of this or the normal market value of the assets or rights received will be classified as return of capital furniture, in accordance with the provisions of article 25.1 a) of the Personal Income Tax Law , with the highest limit of the following amounts :
The increase in the net asset value of the shares from their acquisition or subscription until the moment of the reduction of share capital.
When the capital reduction comes from undistributed profits, the amount of said profits . For these purposes, capital reductions, whatever their purpose, will be considered to first affect the part of the share capital that comes from undistributed profits, until their cancellation .
The excess over the aforementioned limit will reduce the acquisition value of the affected shares until their cancellation , in the terms established in article 33.3 a) of the Personal Income Tax Law .
In turn, the excess that may result will be integrated as income from the capital from the participation in the equity of any type of entity, in the manner provided for the distribution of the share premium corresponding to securities admitted to trading in any of the stock markets of the European Union.
b. In the cases of distribution of the issuance premium for shares of variable capital investment companies , the entire amount obtained will be considered a return on movable capital, without the aforementioned reduction in value being applicable. of acquisition of shares admitted to trading on any of the stock markets of the European Union, provided for in article 25.1 e) of the Personal Income Tax Law .
The provisions for SICAV will also apply to collective investment organizations equivalent to variable capital investment companies that are registered in another State, regardless of any limitations they may have with respect to restricted groups. of investors, in the acquisition, transfer or redemption of their shares; In any case, it will apply to companies covered by Directive 2009/65/EC of the European Parliament and of the Council, of July 13, which coordinates the legal, regulatory and administrative provisions on certain undertakings for collective investment in securities. furniture [Art. 94.2.b) Law Personal Income Tax ].
B. Dividends and profit sharing from certain borrowed securities
Dividends, participation in profits and other income derived from the securities borrowed referred to in the eighteenth Additional Provision of Law 62/2003, of December 30, on fiscal, administrative and social order measures (BOE of 31) They will be integrated into the borrower's income in accordance with the provisions of the aforementioned provision.
Regarding the tax regime for the lender of the remunerations and, where applicable, the compensation for the economic rights derived from the securities lent during the term of the loan, it is discussed in this same Chapter.
Precision: Please note that Law 27/2014, of November 27, on Corporate Tax ( BOE of 28), has been repealed with respect only to said tax, with effects 1 January 2015, section 2 of the eighteenth Additional Provision of Law 62/2003, of December 30, which establishes the tax regime applicable to securities lending operations. Therefore, the tax treatment provided for in the aforementioned eighteenth Additional Provision of Law 62/2003 when the lender or borrower is a taxpayer for Personal Income Tax remains in force.
In particular, the borrower must integrate into its tax base the entire amount received derived from the securities borrowed. In particular, the entire amount received on the occasion of a distribution of the share premium or a capital reduction with refund of contributions that affects the securities lent, as well as the market value corresponding to the subscription rights or free allocation awarded in cases of capital increase.
The tax regime applicable to the acquisitions or transfers of securities homogeneous to those borrowed made by the borrower during the term of the loan, is discussed in Chapter 11.