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V1944-17 19 July 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · canje de valores

Canje of shares and non-cash contributions may qualify for LIS special regime

A family asks whether creating a holding company through share exchanges and non-cash contributions can benefit from the LIS special regime. The DGT confirms this is possible if majority voting or minimum shareholding with uninterrupted ownership is met, provided valid economic reasons exist.

The question raised

1) Whether the described transaction may qualify for the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

For the exchange of securities, the entity must acquire the majority of voting rights and comply with the requirements of Article 80 of the LIS. In non-monetary contributions, the shareholding must exceed 5% and the shares must be held uninterruptedly for one year. The transaction must not have the primary purpose of tax fraud or evasion, and must be based on valid economic reasons such as the restructuring or rationalization of activities.

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