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V1989-24 17 September 2024 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Dividends from a subsidiary may be exempt in the acquiring company if Art. 21 LIS requirements are met

An entity makes a non-monetary contribution of shares in a subsidiary to another company within the group. A query is raised regarding whether the dividends distributed by the subsidiary to the new acquirer may benefit from tax exemption.

The question raised

Question raised

The DGT's ruling

The holdings acquired by the acquiring company shall be valued at their market value pursuant to Art. 17.4 b) LIS. Dividends may benefit from the exemption under Article 21 LIS if the requirements regarding the percentage of ownership (minimum 5%) and holding period (one uninterrupted year) are met. For the calculation of the holding period, the period during which the holding was owned by other entities of the same group shall be taken into account. The computable taxable income shall be reduced by 5% for management expenses.

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