Skip to content
Back to index
V0524-14 26 February 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Special merger and contribution regime possible with valid economic reasons

The DGT confirms that contributions of business activities and mergers between companies may qualify for the special regime under corporate tax if the economic unity requirement is met and the operation is based on valid economic reasons rather than just tax advantages.

The question raised

1. Whether the application of the special regime of Chapter VIII of Title VII of the Recast Text of the Corporate Income Tax Law is appropriate for the described operations. In particular:

The DGT's ruling

For the contribution of business branches, the transferred assets must constitute an autonomous economic unit that allows for the development of an economic activity within the acquiring company. In the case of mergers, the operation must be carried out in accordance with commercial regulations and comply with Article 83.1 of the Recast Text of the Corporate Income Tax Law. The special regime shall not be applicable if the primary objective is tax fraud or evasion, or if there are no valid economic reasons such as the restructuring or rationalization of activities.

Book your free first meeting