Back to index
V0854-20 14 April 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · régimen especial de fusiones

A merger of companies may qualify for the special regime if carried out for valid economic reasons

The taxpayer asks whether a merger between two insurance companies may apply the special merger regime of the LIS. The DGT indicates that this is possible if the transaction meets commercial and tax requirements and is carried out for economic reasons and not for the purpose of obtaining a tax advantage.

The question raised

Question posed: Whether, given the economic reasons described, the described transaction may qualify for the special regime for mergers, demergers, asset contributions, exchange of securities, and change of registered office of a European Company or a European Cooperative Society from one Member State to another within the European Union, as provided for in Chapter VII of Title VII of Law 27/2014, of 27 November, on Corporate Income Tax.

The DGT's ruling

To qualify for the special regime, the merger must comply with the provisions of Article 76.1.c) of the LIS and the requirements of Law 3/2009. Furthermore, pursuant to Article 89.2 of the LIS, the transaction must not have fraud or tax evasion as its primary objective. The described motives of structural simplification, management efficiency, and cost reduction could be considered valid economic reasons, although their final validation depends on the facts and circumstances of the transaction.

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