Skip to content
Back to index
V1038-16 15 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión por absorción

Absorbing mergers may qualify for special regime if driven by valid economic reasons

The consultant asks whether their merger operations can apply the special regime of the LIS and if their motives are valid. The DGT responds that they may do so if they meet commercial and LIS requirements, provided they do not seek tax fraud or fiscal advantage.

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 reasons can be considered valid for the purposes of applying the aforementioned special regime.

The DGT's ruling

Merger by absorption operations may qualify for the special regime under Chapter VII of Title VII of the LIS if they are carried out under Law 3/2009 and comply with the requirements of the LIS. Said regime shall not apply if the main objective of the operation is tax fraud or evasion, or if it is not carried out for valid economic reasons. In this specific case, the alleged reasons of corporate simplification and cost reduction are considered economically valid pursuant to Article 89.2 of the LIS.

Book your free first meeting