Skip to content
V1878-16 ·27 April 2016 ·consulta-vinculante Medium impact
Tax

Special merger regime applicable if valid economic reasons exist and no double compensation occurs

A company has requested a ruling on whether a merger can qualify for the special regime under the Corporate Income Tax Act and how it would affect tax loss carryforwards. The Directorate General for Taxes (DGT) states that this is possible provided the transaction meets commercial and tax requirements and serves genuine economic purposes rather than being solely for tax advantages.

In 6 key points

How it affects those involved

Companies undertaking restructurings must ensure that mergers are driven by legitimate business purposes to qualify for special tax treatment and avoid issues regarding tax loss carryforwards.

Lifecycle

2016-04-27PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact