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V1071-14 14 April 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión por absorción

Possibility of applying special merger regime in a German-UK merger

A German company's Spain branch will be absorbed by its UK resident shareholder. The DGT examines whether the transaction qualifies for the special merger regime and its impact on the Spanish branch's taxation.

The question raised

1. Whether the special regime of Chapter VIII of Title VII of the recast text of the Corporate Income Tax Law is applicable to the merger by absorption of the entity resident in Germany by its sole shareholder, an entity resident in the United Kingdom, which determines in Spain a change in the head office of a branch in Spain of the absorbed entity.

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