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V0851-22 20 April 2022 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportaciones no dinerarias

Asset contributions may qualify under special regime if residency, ownership and valid economic motives are met

A company inquired whether contributing an industrial building to its subsidiary could qualify under the LIS special regime. The DGT states that such contribution may apply if residency and ownership requirements are met and the transaction has valid economic motives.

The question raised

Question raised: Whether the special tax regime regulated in Title VII of Chapter VII of Law 27/2014, of November 27, on Corporate Income Tax is applicable to the aforementioned transaction, recognizing for these purposes the existence of valid economic reasons.

The DGT's ruling

To apply the special regime for non-monetary contributions, the entity receiving the asset must be a resident in Spain or have a permanent establishment, and the contributing entity must retain at least 5% of the recipient's equity. Furthermore, the transaction must not have the primary objective of tax fraud or evasion, and must be carried out for valid economic reasons such as the restructuring or rationalization of activities. The proposed reasons of restructuring, limitation of liability, and diversification of investments could be considered economically valid, although their final classification depends on the actual facts and circumstances of the transaction.

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