Skip to content
Back to index
V1150-16 22 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · reinversión de beneficios extraordinarios

Acquisition of shares in an entity may qualify for the reinvestment of extraordinary profits

An entity inquired whether purchasing all shares in company B qualifies for the tax deduction for the reinvestment of extraordinary profits, given that the company's main asset is a property that will soon be operational. The DGT ruled that this is possible provided the requirements of Article 42 of the TRLIS are met.

The question raised

Considering that the principal asset (real estate) of the acquired shares is going to become operational within the reinvestment period, whether the acquisition of all shares of entity B is considered a suitable capital element to effectuate the reinvestment in accordance with the provisions of section 3 of Article 42 of the TRLIS.

The DGT's ruling

Values representing participation in the capital of entities are suitable elements for reinvestment, provided they are not those excluded under section 4 of Article 42 of the TRLIS. Furthermore, if the investee entity has elements not related to economic activities exceeding 15% of its assets, the reinvestment shall not be deemed to have occurred for the percentage corresponding to said elements.

Book your free first meeting