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Practical manual for Income Tax 2023.

Transitional scheme

Regulations: Eighth transitional provision Law IRPF

Shares and stocks acquired before January 1, 1999

For the purposes of calculating the excess of the net asset value, the acquisition value will be taken as the net asset value on January 1, 1999, with respect to the shares and stocks owned by the taxpayer in said year. The difference between this value and the effective acquisition value shall not be taken as the acquisition value for the purposes of determining the income derived from the transfer or reimbursement of the shares or interests.

Profits obtained prior to January 1, 1999

Dividends and profit shares distributed by collective investment institutions, which derive from profits obtained prior to 1 January 1999, shall be included in the tax base of the partners or participants thereof. For these purposes, it shall be understood that the first distributed reserves have been allocated with the first profits earned.

Example:

Mr. SMG has held since March 1998 a share in a collective investment institution established in a country classified by regulation as a non-cooperative jurisdiction, the acquisition value of which was the equivalent of 12,020 euros.

The net asset value of said participation as of 31-12-2023 is 31,800 euros.

Determine the income attributable to the year 2023, knowing that the net asset value of the participation as of 01-01-1999 amounted to the equivalent of 12,500 euros and that the imputed income in the years 1999 to 2022 amounted to 16,200 euros.

Solution:

Allocation of income corresponding to the year 2023:

  • Net asset value as of 12-31-2023: 31,800
  • Acquisition value as of 01-01-2023: 28,700 (1)
  • Attributable income (31,800 - 28,700) = 3,100

Note to example:

(1) The acquisition value at the beginning of the tax period is determined based on the net asset value as of 01-01-1999 (12,500 euros) and adding to that amount the income imputations made in the years 1999 to 2022 (16,200). So that: 12,500 + 16,200 = 28,700. (Back)