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V2507-24 ·10 December 2024 ·consulta-vinculante Medium impact
Tax

Merger by creation of new company: fiscal neutrality applies when eliminating management redundancies

Two companies (X and Z) proposed merging to form a new entity (Newco) and dissolving themselves. They asked whether the operation falls under the IS neutrality regime and whether eliminating management redundancies constitutes a valid economic reason. The DGT confirmed both: the merger falls under LIS Article 76.1.b) and the objective of reducing costs and formal obligations is considered a valid economic reason, notwithstanding possible subsequent verification.

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2024-12-10PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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