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V2013-20 18 June 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Non-monetary contributions may apply under LIS special regime if conditions met

A natural person enquires whether their share contribution to another entity may qualify for the LIS special regime. The DGT states that this is possible if the requirements of ownership and participation are met, and the economic motives cited may be valid.

The 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, and whether valid economic reasons exist.

The DGT's ruling

To apply the special regime for non-monetary contributions, the beneficiary entity must be resident in Spain or have a permanent establishment, the contributor must hold at least 5% of the equity of the recipient entity, and the holdings must have been held uninterruptedly during the previous year. Furthermore, the operation must not have the primary objective of tax fraud or evasion, and valid economic reasons must exist. Reasons such as centralization of investments, unified management, maximization of reinvestment, and facilitation of hereditary transfer could be considered valid, although their classification depends on the facts.

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