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V2092-16 ·13 May 2016 ·consulta-vinculante Medium impact
Tax

Corporate mergers may qualify for special Corporation Tax regime if valid economic reasons exist

An entity queried whether a merger operation could apply the special Corporation Tax regime and its implications for VAT. The DGT ruled that a merger may qualify for this regime if it meets commercial and economic requirements; however, the transfer of a single property does not constitute an autonomous economic unit for the purpose of VAT exemption.

In 6 key points

How it affects those involved

Companies planning mergers must demonstrate substantive economic and commercial rationale to benefit from special tax treatments and avoid VAT liabilities on individual asset transfers.

Lifecycle

2016-05-13PublishedPublished 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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