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V0540-14 ·28 February 2014 ·consulta-vinculante Medium impact
Tax

Special merger regime without share allocation applicable if there is a single common shareholder

A taxpayer inquired whether a merger between two companies wholly owned by them could qualify for the special tax regime without the allocation of the absorbing company's shares to the shareholder. The DGT ruled that this is possible provided that commercial requirements are met and the transaction is supported by valid economic reasons.

In 6 key points

How it affects those involved

This ruling clarifies the applicability of tax neutrality in mergers where a single shareholder holds the entirety of both companies, provided the transaction is not solely for tax avoidance.

Lifecycle

2014-02-28PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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