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V2092-19 ·8 August 2019 ·consulta-vinculante Medium impact
Tax

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

A construction and property development company has requested a ruling on whether a merger by absorption of a real estate leasing subsidiary can qualify for the special Corporate Tax regime, the waiver of VAT exemption, and the specific treatment regarding Transfer Tax (ITP/AJD) and the Tax on Legal Entities' Property Transfers (IIVTNU). The Directorate General for Taxes (DGT) indicates that applying the special Corporate Tax regime depends on the operation meeting commercial requirements and having valid economic motives, rather than being purely tax-driven.

In 6 key points

How it affects those involved

Companies undertaking restructuring must ensure that mergers are driven by genuine commercial purposes to benefit from tax relief and avoid being classified as mere asset transfers.

Lifecycle

2019-08-08PublishedPublished 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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