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A parent company has requested clarification on the consequences of temporarily losing its shareholding in a subsidiary during a restructuring process. The Directorate General of Taxes (DGT) clarifies that the entity will be excluded from the group regime during the liquidation period in which the loss occurs and may only rejoin during the following calendar year.
Entities undergoing restructuring must account for the potential loss of VAT group status if their shareholding in a subsidiary falls below the required threshold, as reintegration is not immediate and can only occur in the subsequent calendar year.
The tax team reviews your specific situation.
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