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V2077-23 14 July 2023 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · neutralidad fiscal

A religious entity may benefit from the tax neutrality regime in a merger if it meets the requirements of the LIS

A religious entity subject to the regime of Law 49/2002 inquires whether it may apply the special merger regime when absorbing a commercial company of which it is the sole shareholder. The DGT responds that it is possible if the operation produces results equivalent to a merger and the dissolution of the company without liquidation is fulfilled.

The question raised

Question posed: Whether the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, would be applicable to the described operation, whether the rural estate owned by company X is operated by it or would be operated directly by the company and not assigned under lease.

The DGT's ruling

The operation may benefit from the tax neutrality regime of Chapter VII of Title VII of the LIS if it produces results equivalent to a merger and complies with article 76.1.c), through the dissolution of the company without liquidation and the transfer of its entire assets to the religious entity. In this case, the income will not be integrated into the taxable base of the transferor and the values and seniority of the assets will be maintained in the acquirer. However, the regime will not be applicable if the main objective of the operation is tax fraud or evasion or if there are no valid economic reasons.

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