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V0574-22 21 March 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IS · sicav

Allocation of collective investment institution shares in a SICAV liquidation may meet reinvestment requirements

The DGT confirms that allocating existing shares of collective investment institutions to a partner in a liquidating SICAV can qualify for income tax deferral, provided procedural communication and full reinvestment requirements are met.

The question raised

1. Whether the reinvestment condition required in letter c) of section 2 of the forty-first provision of the Corporate Income Tax Law can be met through the allocation to the shareholder, in payment of their liquidation amount, of units or shares in collective investment schemes provided for in letters a) or b) of section 4 of article 29 of said Law, held on the balance sheet of the variable capital investment company undergoing liquidation.

The DGT's ruling

The allocation of units in Collective Investment Schemes (CIS) eligible for reinvestment fulfills the purpose of the transitional regime and the requirement regarding the unavailability of assets. To apply the deferral, the shareholder must communicate their decision to the SICAV, provide acquisition documentation, and communicate the acceptance of the reinvestment to the target CIS. Furthermore, the entirety of the liquidation amount must be reinvested, including any cash portion.

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