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V2088-23 17 July 2023 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Fiscal neutrality regime applicable to non-monetary contributions if participation and economic motives are met

The DGT confirms that a reorganisation involving social shares may qualify for the special fiscal neutrality regime if participation thresholds are met and the main objective is not fiscal advantage.

The question raised

Question posed: Whether the restructuring operation proposed meets the valid economic reasons referred to in Article 89.2 of Law 27/2014, of November 27, on Corporate Income Tax (hereinafter, LIS), and, therefore, whether the special regime of tax neutrality regulated in Chapter VII of Title VII of the LIS is applicable.

The DGT's ruling

To apply the special regime for non-monetary contributions, the receiving entity must be a resident in Spain or have a permanent establishment, and the contributor must hold at least 5% of the entity's equity following the contribution. In the case of natural persons, the contributed shares must represent at least 5% of the equity and must have been held uninterruptedly during the previous year. The regime shall not apply if the primary objective of the transaction is fraud, evasion, or the mere obtaining of a tax advantage without valid economic reasons.

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