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V1041-16 15 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión

Mergers of collective investment schemes may qualify for special Corporate Tax regime if valid economic reasons exist

A query was raised regarding whether the merger of two open-ended collective investment schemes (IIC) can apply the special merger regime under the Corporate Tax Act. The Directorate General for Tax (DGT) indicates that this is possible provided the requirements of Article 76.1 of the Corporate Tax Act are met and the primary purpose of the transaction is not tax fraud or evasion.

The question raised

Whether the described operation could qualify for the special tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

The merger operation of collective investment schemes could qualify for the special regime under Chapter VII of Title VII of the Corporate Income Tax Act if carried out in a commercial context and complying with the provisions of Article 76.1 of said Act. To apply this regime, the operation must not have fraud or tax evasion as its primary objective, but must instead respond to valid economic reasons pursuant to Article 89.2 of the Corporate Income Tax Act. The mentioned reasons of restructuring, cost reduction, and investment diversification may be considered valid.

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