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V1551-17 16 June 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · régimen especial de aportaciones

Contribution of shares to a new company may qualify for special Corporate Tax regime

A family business has enquired whether contributing its shares to a new company (NEWCO) qualifies for the special Corporate Tax regime and whether the reductions in Inheritance and Gift Tax are maintained. The DGT has ruled that this is possible provided that the requirements for shareholding and valid economic reasons are met, and that the family business tax reduction is not lost.

The question raised

Question raised 1) Whether the described transaction may 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, provided that the consulting entity does not waive the application of the tax neutrality regime.

The DGT's ruling

The contribution of social shares by natural persons may apply the special regime under Article 87 of the LIS if the receiving entity is resident in Spain, the contributor maintains at least 5% of the equity, and the shares have been held uninterruptedly during the previous year. The transaction must have valid economic reasons, such as generational succession planning or structural rationalization, to avoid incurring tax fraud or evasion. Likewise, the reduction in Inheritance and Gift Tax is not lost if the acquisition value and the ownership of the new shares received are maintained.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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