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V1093-15 ·9 April 2015 ·consulta-vinculante Medium impact
Tax

Special merger regime cannot be applied if the primary motive is to exploit tax loss carryforwards

A company has requested clarification on whether the merger of two inactive companies can qualify for the special tax merger regime. The Directorate General of Taxes (DGT) ruled that, as the entities are not operational and possess no assets related to business activity, the transaction lacks valid economic reasons and is primarily intended to exploit tax loss carryforwards.

In 6 key points

How it affects those involved

Companies attempting to use mergers solely for tax relief purposes without genuine economic substance risk being denied the special tax regime benefits.

Lifecycle

2015-04-09PublishedPublished 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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