4.10. SP SPLIT OR CONTRA SPLIT

These operations will include:

• The number of old shares.

• The nominal value of the old shares.

• The number of new shares.

• The nominal value of the old shares.

Split

In the Split or stock split operation, the nominal value of the shares is reduced, increasing their number, but maintaining the same value of the share capital.

The operation consists of the exchange of shares in a company for a greater number of shares in the same company of lower nominal value, maintaining the same percentage of participation in the share capital.

This operation does not give rise to a gain or loss of assets for the shareholder as long as he or she maintains the same percentage of participation in the share capital, since in these cases there will be no variation in the value of the taxpayer's assets, even if there is an alteration in their composition. For the purposes of future sales, the shares received in the exchange retain the seniority of the shares delivered, that is, the date of acquisition of those delivered.

Against Split

The reverse split or share grouping operation is an adjustment in reverse of the split. The number of shares in circulation is reduced, and the nominal value of the shares is increased, while maintaining the same value of the share capital.

The operation consists of the exchange of shares in a company for a smaller number of shares of a higher nominal value in the same company. The number of shares is reduced and their nominal value is increased, while maintaining the same percentage of participation in the share capital.

This operation does not give rise to a gain or loss of assets for the shareholder as long as he or she maintains the same percentage of participation in the share capital, since in these cases there will be no variation in the value of the taxpayer's assets, even if there is an alteration in their composition. For the purposes of future sales, the shares received in exchange retain the seniority of the shares delivered, that is, the date of acquisition of those delivered.

In these operations it is necessary that the number of old shares by their nominal value be equal to the number of new shares by their nominal value. If there have been peaks, the corresponding transfer or acquisition of old shares to the company that allows this equivalence to be fulfilled will be recorded beforehand.

• Operation type SP.

• Date of the operation of transfer of rights.

• Market key according to the operation carried out:

  • 10. Official Spanish secondary securities market

  • 11. Official secondary market for European foreign securities

  • 12. Official secondary market for non-European foreign securities.

• Number of titles.

• Amount of the transaction.

• Nominal value of the securities.

• Bills.

• Number of old titles.

• Old nominal.

• Example:

• Company X performs the following SPLIT operation on its securities:

  For each old share with a nominal value of 10 euros, there will be 2 shares with a nominal value of 5 euros.

  At the time prior to the Split, a taxpayer has 250 shares of company X, which are declared in his portfolio as an Acquisition/Subscription (AD).

• To declare this type of operation, you must create a new operation within the corresponding grouping of the value X, selecting SP (Split or Reverse Split) as the operation type.

  Filling in the date field will automatically fill in the old number of titles, in this case 250.

  In the Unit Nominal field of the old securities you must enter 10 euros.

  In the No. Titles field you must enter 500 (250 x (10/5))

  In the Unit Nominal field you must enter 5 euros (the new nominal).

  You should note that this operation will be consistent (green color) when the following equality is fulfilled:

  Number of old titles x Old unit nominal value = Number of new titles x New unit nominal value.