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V1766-15 3 June 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · canje de valores

Special asset contribution regime applicable if ownership requirements and valid economic reasons are met

A taxpayer has enquired whether the contribution of shares to a new holding company may qualify for the special regime under the Corporate Income Tax Act. The DGT has ruled that this is possible provided that participation and ownership requirements are satisfied, and that the transaction serves genuine economic purposes rather than being solely for tax advantages.

The question raised

Question posed: Whether the described transaction may qualify for the special tax regime under Chapter VII of Title VII of Corporate Income Tax Law 27/2014, of November 27.

The DGT's ruling

For the contribution of shares or social interests, it is required that they represent at least 5% of the equity of the contributed entity, that the entity is not an economic interest group or a wealth management entity, and that the contributor has held them uninterruptedly during the previous year. Furthermore, the contributor must maintain a participation of at least 5% in the entity receiving the contribution. The transaction must not have the primary objective of tax fraud or evasion, and must respond to valid economic motives such as the restructuring or rationalization of activities.

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