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V0060-17 17 January 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión

Mergers between Collective Investment Schemes may qualify for special Corporate Tax regime if valid economic reasons exist

An investment management company has enquired whether the merger of investment funds and investment companies can benefit from the special Corporate Tax regime and if its underlying motives are valid. The Directorate General for Taxes (DGT) responds that this is possible provided the requirements of Article 76.1 of the Corporate Tax Act are met and the economic reasons presented are valid.

The question raised

Question raised 1. Whether the aforementioned operations may qualify for the special tax regime under Chapter VII of Title VII of the LIS and whether the reasons stated may be considered valid economic motives for the purposes of the provisions of Article 89.2 of the LIS.

The DGT's ruling

Merger operations between Collective Investment Schemes (CIS) may qualify for the special regime under the Corporate Income Tax Act (LIS) if they are carried out for commercial purposes and comply with Art. 76.1 LIS. The motives of portfolio optimization, management efficiency, cost savings, and the elimination of duplicities are considered valid economic motives pursuant to Art. 89.2 LIS. In these operations, resident shareholders in Spain shall not include income from the attribution of values and shall maintain their tax value. Regarding the Personal Income Tax and Non-Resident Income Tax Act (ITPAJD), these restructuring operations are not subject to the corporate operations modality and are exempt from the onerous transfers and documented legal acts modalities.

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