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V0756-15 9 March 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Non-cash contributions may apply under special regime if conditions met

A shareholder asks whether contributions of holding company shares to another company may qualify for the special non-cash contribution regime. The DGT states this is possible if participation and residency requirements are met and the transaction has valid economic motives.

The question raised

Whether the contribution of shares in company A within the framework of a planned capital increase operation of company B could be subject to the special tax regime of Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, and specifically be considered a special non-monetary contribution as provided for in Article 87 of the LIS.

The DGT's ruling

The special regime for non-monetary contributions is applicable if the recipient entity is a resident in Spain, the contributor maintains at least 5% of the recipient entity's equity following the transaction, and the requirements regarding uninterrupted ownership and the nature of the contributing entity are met. Furthermore, the transaction must not have the primary objective of tax fraud or evasion, and must respond to valid economic reasons rather than the mere pursuit of a tax advantage.

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