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V0981-21 19 April 2021 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión por absorción

Merger by absorption may qualify for special Corporate Tax regime, VAT non-applicability and ITP exemption under certain conditions

A viticulture company has enquired whether a merger with its real estate subsidiary can utilise the special Corporate Tax regime and if the economic motives are valid. The DGT indicates that, provided mercantile and economic requirements are met, the operation may qualify for the special regime, be not subject to VAT, and be exempt from ITP.

The question raised

Question posed: Whether the projected operation may qualify for the special tax regime regulated in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, and whether the economic reasons may be considered valid for the purposes of applying the special regime.

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