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V2302-20 7 July 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Contribution of a community property share may qualify for special IS regime

The DGT confirms that a contribution of a community property share to a company may apply the special non-cash contribution regime, provided the requirements of the LIS are met and the contribution consists of assets related to business activities.

The question raised

1) 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.

The DGT's ruling

The contribution of the abstract or ideal share of a community of property is considered a special non-monetary contribution pursuant to Article 87.1 of the LIS. To qualify for the special regime, it must be ensured that the receiving entity is a resident in Spain, that the contributor holds at least 5% of the equity, that elements used for business activities are contributed, and that accounting is maintained in accordance with the Commercial Code. Furthermore, the operation must not have the primary purpose of tax fraud or evasion.

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