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V2097-20 23 June 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportaciones no dinerarias

Requirements for non-cash contributions under special LIS regime and economic activity in property leasing

The DGT asks whether contributions of shares in a company to family entities may qualify for the special LIS regime and whether valid economic motives exist. The DGT states that this is possible if minimum participation thresholds are met and the transaction is not primarily aimed at fraud or tax advantage.

The question raised

1) Whether the described non-monetary contribution 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 motives exist.

The DGT's ruling

To apply the special regime for non-monetary contributions, the receiving entity must be a resident in Spain and the contributor must maintain a shareholding of at least 5% in the equity. Furthermore, the operation must not have the primary objective of tax fraud or evasion, but rather valid economic motives such as the restructuring of activities. In the case of real estate leasing, the activity shall be considered economic if the corporate group has at least one employee with a full-time employment contract.

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