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V0697-16 22 February 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · canje de valores

The special regime for exchange of securities may be applied if the requirements of the CIT are met and valid economic reasons exist

The applicant asks whether a share acquisition transaction can qualify for the special regime for exchange of shares and whether the acquiring entity is considered a holding company. The DGT rules that this is possible provided the requirements of Article 80 of the Corporate Income Tax Act are met and valid economic reasons exist, and that the status of a holding company will depend on the composition of its assets.

The question raised

Question raised 1) Whether the described operation meets the necessary requirements for the application of the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

The special regime for the exchange of securities is applicable if the entity acquires the majority of voting rights and the requirements of Article 80 of the LIS are met. The transaction must not have the primary objective of tax fraud or evasion, requiring valid economic motives such as the restructuring or rationalization of activities. An entity shall be considered a holding company if more than 50% of its assets are securities or elements not used for an economic activity, subject to the specific exceptions of Article 5.2 LIS.

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