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V2306-20 7 July 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · régimen especial de aportaciones de activos

Application of the special regime for asset contributions requires minimum participation and valid economic motives

A consulting entity asks whether the contribution of its real estate to another company can qualify under the special regime of Corporate Income Tax and whether the economic motives are valid. The DGT states that minimum participation requirements must be met and that the validity of economic motives is a factual issue.

The question raised

Whether the provisions of Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, are applicable to the income derived from the operations described above, and whether the economic reasons can be considered valid for the purposes of applying the aforementioned special regime. In particular:

The DGT's ruling

To apply the special regime for contributions of assets, the contributing entity must hold at least a 5% interest in the equity of the recipient entity, which must be resident in Spain or have a permanent establishment. The transaction must not have the primary objective of tax fraud or evasion, requiring valid economic reasons such as the restructuring or rationalization of activities. The reasons alleged by the taxpayer could be considered economically valid, although their final classification depends on the verification of the facts.

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