Skip to content
Back to index
V1087-16 17 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión por absorción

Spanish IIC mergers may qualify for special tax regime with valid economic reasons

Two Spanish collective investment institutions intend to merge by absorption with a Luxembourg SICAV. The DGT examines whether the transaction qualifies for the special merger regime and the tax treatment of shareholders.

The question raised

Question raised 1) Whether the mentioned operations may benefit from the special tax regime of Chapter VII of Title VII of the LIS. And in the event that said regime is applicable, what would be the taxation for the natural person shareholders of the consulting entities.

The DGT's ruling

If the merger is carried out under the terms of the IIC Law and complies with Article 76.1 of the LIS, it may benefit from the special regime. Income from partners resident in Spain or the EU shall not be taxed upon the attribution of shares, but rather when these are transferred or residency is lost. The notification of the special regime must be made by the absorbed entity as it is resident in Spain. The economic reasons presented are considered valid to avoid the application of Article 89.2 of the LIS.

Email
Contact