Back to index
V0645-14 10 March 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · régimen especial

Special asset contribution regime applicable if participation requirements and valid economic reasons are met

An individual has enquired whether they can contribute shares from several companies to a new holding company under the special Corporate Tax regime. The DGT indicates that, based on the facts, the requirements for residence, percentage of participation, and uninterrupted ownership are met, and that the economic reasons appear to be valid.

The question raised

Question posed: Whether the described operation may qualify for the special tax regime established in 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.

The DGT's ruling

To apply the special regime for the contribution of assets, the recipient entity must be a resident in Spain and the contributor must retain at least 5% of its equity. In the case of contributions of shares by natural persons, these must represent at least 5% of the equity of the contributed entity, which cannot have the management of movable or immovable property as its main activity, and must be held uninterruptedly during the previous year. Furthermore, the operation must not have the primary objective of tax fraud or evasion, and there must exist valid economic reasons beyond mere tax advantage.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Book a meeting Write to the firm
Email
Contact