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V0508-15 9 February 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportaciones no dinerarias

Requirements for physical persons to apply for special asset contribution regime

A couple in a community of property regime asks whether contributing their retail business to a society may qualify for the LIS special regime. The DGT confirms it is possible, provided the requirements of participation and allocation are met, and valid economic motives exist.

The question raised

Whether the described transaction may qualify for the special tax regime under Chapter VII of Title VII of the Corporate Income Tax Law.

The DGT's ruling

To apply the special regime for non-monetary contributions, the receiving entity must be a resident in Spain and the contributor must hold at least 5% of the equity. The contributed assets must be used for an economic activity, which remains the case even if ownership is held jointly by spouses under the community property regime. Furthermore, the transaction must correspond to valid economic reasons and must not have the primary purpose of obtaining a tax advantage.

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