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A company has requested clarification on whether a merger by absorption of three entities (B, C, and D) can qualify for the special merger regime. The Directorate General for Taxes (DGT) indicates that while the reasons cited for the operating companies (B and C) are economic, the transaction may not be valid for the inactive company (D) if its sole purpose is to exploit tax loss carryforwards.
The tax team reviews your specific situation.
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