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V1663-20 ·28 May 2020 ·consulta-vinculante Medium impact
Tax

Merger may qualify for special regime if driven by valid economic reasons rather than tax advantages

A company has requested a ruling on whether its merger by absorption meets the requirements for the special tax regime. The DGT indicates that the transaction must be carried out under the Structural Changes Act and comply with Article 76.1 of the Corporate Income Tax Act, ensuring that the primary objective is not tax advantage.

In 6 key points

How it affects those involved

Companies planning structural reorganisations must ensure that mergers are justified by genuine economic purposes to qualify for tax benefits and avoid scrutiny regarding tax avoidance.

Lifecycle

2020-05-28PublishedPublished 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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