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V0917-16 10 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen de grupo de entidades

Entity group regime applicable if shareholding exceeds 50% and ensures effective control

An entity sought clarification on whether it met the requirements to apply the entity group regime, given it held more than a 50% stake in another company. The DGT ruled that, with a shareholding of 50.000000096%, the requirements are met provided that such stake allows for effective control over the subsidiary.

The question raised

Compliance with the subjective requirements for the application of the group of entities regime provided for in Law 37/1992.

The DGT's ruling

To apply the group of entities regime, there must be a dominant entity with effective control over dependent entities through a holding of more than 50% of the capital or voting rights. Financial, economic, and organizational links are required, although it is presumed that compliance with the financial link entails the other two, unless proven otherwise. In the specific case, a holding of more than 50% allows for the application of the regime if such effective control is guaranteed.

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