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V1986-19 31 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 qualify for the special exchange regime. The DGT states that it is possible if a majority of voting rights is acquired, the requirements of Article 80 of the LIS are met, and the transaction does not primarily aim at fraud or tax evasion.

The question raised

Question posed: Whether the described operation could 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

To apply the special regime for the exchange of securities, the entity must acquire holdings that allow it to obtain the majority of voting rights and comply with the residence and valuation requirements of Article 80 of the LIS. Furthermore, the operation must not have fraud or tax evasion as its primary objective, and must be carried out for valid economic reasons such as the restructuring or rationalization of activities. The determination of whether the alleged reasons are valid depends on the facts and may be subject to administrative verification.

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