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V1988-19 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 DGT confirms that a share acquisition to gain control may qualify for the special exchange regime if Articles 76.5 and 80.1 of the LIS are satisfied and the transaction does not primarily aim at fraud or tax evasion.

The question raised

Question raised: 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 shares that allow it to obtain the majority of voting rights. The residency requirements for the partners and the acquiring entity provided for in Article 80.1 of the LIS must be met. Likewise, the operation must not have the primary objective of tax fraud or evasion, and must respond to valid economic reasons pursuant to Article 89.2 of the LIS. The validity of the economic reasons presented is a question of fact that the Administration may verify.

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