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V2609-16 ·13 June 2016 ·consulta-vinculante Medium impact
Tax

Reinvestment tax deduction may be maintained if shareholding falls below 5% due to a merger

A company enquired whether it could apply the tax deduction for the reinvestment of extraordinary profits if, after acquiring a 5% stake in a company, its shareholding fell below that threshold due to a merger by absorption. The Directorate General for Taxes (DGT) ruled that a reduction in percentage caused by a merger is considered a justified loss and does not breach the investment maintenance requirement.

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2016-06-13PublishedPublished 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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