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V0883-15 23 March 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportaciones no dinerarias

Non-cash contributions may apply under special regime if participation and economic motives are met

A natural person enquires whether social shares from an agricultural company can be contributed to another society under the special non-cash contribution regime. The DGT confirms this is possible provided the percentage participation, uninterrupted ownership and valid economic motives are met.

The question raised

1. Whether the described transaction may qualify for the special tax regime under Chapter VII of Title VII of the Corporate Income Tax Law.

The DGT's ruling

To apply the special regime for non-monetary contributions, the beneficiary entity must be a resident in Spain or have a permanent establishment. The contributor must have held the shares uninterruptedly during the previous year and maintain a stake of at least 5% in the entity's equity following the transaction. Furthermore, the transaction must respond to valid economic reasons and not have the primary purpose of obtaining a tax advantage. In the event that the requirements of Article 21 of the LIS are met, the dividend exemption may be applied.

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