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A query was raised regarding whether a merger by absorption can qualify for the European Company special regime. The DGT indicates that for this to apply, the operation must comply with the Structural Changes Act and Article 76.1 of the Corporate Income Tax Act, and must not have fraud or tax advantage as its primary purpose.
Companies planning structural reorganisations must ensure that mergers are driven by genuine economic motives rather than tax optimisation to qualify for special tax treatments.
The tax team reviews your specific situation.
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