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V2103-18 16 July 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · canje de valores

Exchange regime applicable if LIS requirements and valid economic reasons met

The consultant asks whether a share acquisition transaction may qualify for the special exchange regime. The DGT responds that it is possible provided the conditions of articles 76.5 and 80.1 of the LIS are met and the transaction does not have the primary objective of tax fraud or evasion.

The question raised

Question raised: Whether the described transaction could qualify for the special tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

To apply the special regime for exchange of shares, the entity must acquire holdings that allow it to obtain the majority of voting rights and comply with the residence and valuation requirements of Articles 76.5 and 80.1 of the LIS. Furthermore, pursuant to Article 89.2 of the LIS, the transaction must respond to valid economic reasons, such as the restructuring or rationalization of activities, and must not have the primary objective of obtaining a tax advantage. The reasons of financial improvement, management simplification, or negotiating capacity mentioned in the inquiry may be considered valid.

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