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V0879-18 3 April 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión

A merger could qualify for IS special regime if commercial and fiscal conditions are met

A holding company inquired whether a merger with its sole shareholder could apply for the IS special regime. The DGT states that if the operation complies with commercial rules and Article 76.1.a) of the LIS, and is driven by valid economic reasons, it may qualify for this regime.

The question raised

Whether the described transaction could benefit from the special 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

To benefit from the special regime, the transaction must be carried out within the commercial sphere pursuant to Law 3/2009 and comply with Article 76.1.a) of the LIS. Furthermore, it must not have fraud or tax evasion as its primary objective, and must respond to valid economic reasons pursuant to Article 89.2 of the LIS. The mentioned reasons of structural simplification, management, and economic efficiency may be considered valid.

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