Back to index
V1990-19 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 an acquisition of shares to gain control of an entity may qualify for the special exchange regime. The DGT states that this is possible if Articles 76.5 and 80.1 of the LIS are met and the transaction does not have fraud or tax evasion as its primary objective.

The question raised

Question posed: Possibility of the projected transaction being eligible for the special tax regime regulated 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 requirements of Article 80 of the LIS. The regime shall not apply if the primary objective of the transaction is fraud, evasion, or if it is not carried out for valid economic reasons, such as the restructuring or rationalization of activities. The determination of whether the motives are economic or merely fiscal will depend on the totality of the circumstances of the transaction.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Book a meeting Write to the firm
Email
Contact