Back to index
V1991-20 17 June 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · canje de valores

Exchange regime applicable if voting control and residency conditions met

The consultant asks whether an acquisition to gain control of two companies qualifies for the special share exchange regime and if the stated economic reasons are valid. The DGT confirms it is possible if voting majority and residency requirements are met, and that the stated motives may be valid if the underlying facts are substantiated.

The question raised

Question posed: Whether the described operations 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 and whether valid economic reasons exist.

The DGT's ruling

To apply the special regime for the exchange of securities, the beneficiary entity must acquire shares that allow it to obtain the majority of voting rights in the participating companies. Likewise, the residency requirements for the partners and the acquiring entity provided for in Article 80.1 of the LIS must be met. The application of this regime is excluded if the primary objective is tax fraud or evasion, or if there are no valid economic reasons such as the restructuring or rationalization of activities. The reasons alleged by the consultant could be considered economically valid, although their final validation depends on the verification of the facts.

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