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V0151-15 19 January 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · régimen fiscal especial

A merger may qualify for the special regime if carried out for valid economic reasons and not for tax advantage

A query is made as to whether a merger operation may apply the special tax regime of the Corporate Income Tax. The DGT responds that for this to occur, the operation must meet mercantile and tax requirements, and its objective must be valid economic reasons rather than the mere obtaining of a tax advantage.

The question raised

Question posed: Whether the described operation may qualify for the special tax regime of Chapter VIII of Title VII of the Recast Text of the Corporate Income Tax Law, approved by Royal Legislative Decree 4/2004, of March 5, and what the accounting treatment of the projected operations would be.

The DGT's ruling

To apply the special merger regime, the operation must comply with the provisions of the Structural Changes Law and Article 83.1 of the TRLIS. The regime shall not apply if the primary objective is tax fraud or evasion, or if valid economic reasons such as the restructuring or rationalization of activities do not exist. The existence of pending negative tax bases to be offset does not, in itself, prevent the application of the regime, provided that the activities are strengthened and the operation benefits the entities.

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