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V1892-19 18 July 2019 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · canje de valores

Exchange regime applicable if LIS requirements and valid economic reasons met

The consultant asks whether a share acquisition transaction may benefit from the special exchange regime and whether valid economic grounds exist. The DGT states that this is possible if the conditions of Article 80 of the LIS are met and the transaction does not have fraud or tax evasion as its primary objective.

The question raised

Question posed: Whether the described operation may benefit from the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax and whether valid economic reasons exist.

The DGT's ruling

To apply the special regime for the exchange of securities, the beneficiary entity must acquire shares that allow it to obtain the majority of voting rights and comply with the requirements of Article 80 of the LIS. Likewise, the operation must not have fraud or tax evasion as its main objective, and must be carried out for valid economic reasons. The reasons of initiating new activities and independent investments could be considered valid, although their classification depends on the facts and circumstances of the operation.

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