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V2234-24 ·15 October 2024 ·consulta-vinculante Medium impact
Tax

Spanish company with 5% stake in UK holding may claim art. 21 LIS dividend exemption despite indirect dividends from subsidiaries in same consolidated group

Entity G (Spain) holds 5% in S (UK), a holding company that owns J and I (both UK), all part of the same consolidated group. S pays dividends to G, part of which come from dividends in J and I. The DGT confirms G may benefit from art. 21.1 LIS exemption: the minimum 5% indirect participation requirement in J and I is not applicable where they belong to the same commercial group as S and prepare consolidated accounts; the tax residency requirement under art. 21.1.b) is met by UK residence and CDI; a 5% management expense reduction applies.

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2024-10-15PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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