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V1835-18 22 June 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · régimen especial de fusiones

Reasons for rationalization and generational succession may be considered valid economic motives for the special merger regime

A query is made as to whether the objectives of a business reorganization constitute valid economic motives for applying the special merger regime. The DGT determines that the rationalization of activities, cost reduction, and generational succession are valid motives.

The question raised

Question posed: It is asked whether the described reorganization motives may be considered valid economic motives for the purposes of applying the special regime.

The DGT's ruling

To apply the special regime, the operation must not have fraud or tax evasion as its primary objective. The motives of rationalization of activities, centralization of decision-making, cost reduction, increase in solvency, facilitation of generational succession, and simplification of administrative management are considered valid economic motives pursuant to Article 89.2 of the LIS. This assessment is made based on the information provided, without prejudice to administrative verifications regarding other circumstances.

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