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V0912-15 24 March 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · régimen especial

Possibility of applying special contribution regime via transfer of business activity or share in community of property

A natural person enquires whether a merger followed by the contribution of their rental activity and share in a community of property may qualify for the special LIS regime. The DGT responds that this is possible if the requirements relating to business activity, accounting and shareholding are met, and if the motives are economic.

The question raised

Whether the proposed operations could qualify for the special tax regime regulated in Chapter VII of Title VII of the Corporate Income Tax Law. And whether the economic grounds can be considered valid for the purposes of applying the aforementioned special regime.

The DGT's ruling

The contribution of a branch of activity may qualify for the special regime if the assets constitute an autonomous economic unit and the contributor retains at least 5% of the entity. The contribution of an ideal share in a community of property is considered a special non-monetary contribution and requires that the community of property carries out an economic activity with accounting in accordance with the Commercial Code. The alleged economic efficiency grounds are valid to avoid the application of the exclusion for fraud or tax advantage.

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