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V1025-18 24 April 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · canje de valores

Exchange regime applicable if LIS requirements and valid economic reasons met

The consultant asks whether the acquisition of shares in hospitality entities by a holding company may qualify for the special exchange regime. The DGT responds that it is possible provided the conditions of Article 80 of the LIS are met and the transaction does not have the primary objective of tax fraud or evasion.

The question raised

Question posed: Whether the described transaction may qualify for the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax and whether valid economic motives exist.

The DGT's ruling

To apply the special regime for the exchange of securities, the beneficiary entity must acquire shares that allow it to obtain the majority of voting rights and comply with the requirements of Article 80 of the LIS. Furthermore, pursuant to Article 89.2 of the LIS, the transaction must not have the primary objective of tax fraud or evasion. The motives of centralizing management, concentrating resources, increasing solvency, enhancing activity, or reinvesting profits may be considered valid economic motives.

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