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V0746-15 9 March 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Requirements for non-monetary contributions under the LIS special regime and tax treatment of a US resident

Two siblings ask whether transferring their shares in a company to other entities can qualify under the LIS special regime and if their reorganisation and management motives are valid. The DGT confirms that the legal requirements are met and that the motives are economic.

The question raised

Whether the proposed operation, carried out by siblings resident in Spanish territory, could qualify for the special tax regime regulated in Chapter VII of Title VII of the Corporate Income Tax Law. And whether the economic reasons can be considered valid for the purposes of applying the aforementioned special regime.

The DGT's ruling

The contribution of shares in entity X by residents in Spain may qualify for the special regime under Article 87 of the LIS upon meeting the requirements of residence, minimum participation, and uninterrupted ownership. The reasons of management rationalization, organizational efficiency, and generational succession are considered economically valid pursuant to Article 89.2 of the LIS. For the resident in the USA, the gain is not taxed in Spain according to the Double Taxation Convention, as the 25% participation threshold is not reached nor is it a company whose assets are primarily real estate.

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