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V2317-14 8 September 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Special regime for non-monetary contributions may apply if participation requirements and valid economic reasons are met

A taxpayer has enquired whether a non-monetary contribution of shares can qualify for the special restructuring regime and if the underlying reasons are valid. The DGT has ruled that, provided the requirements for residence, participation, and holding periods are met, the transaction is eligible if its primary purpose is not tax evasion or tax advantage.

The question raised

Whether the proposed restructuring operation could qualify for the special tax regime regulated in Chapter VIII of Title VII of the recast text of the Corporate Income Tax Law, and whether the economic reasons can be considered valid for the purposes of applying the aforementioned special regime.

The DGT's ruling

To apply the special regime for non-monetary contributions, the recipient entity must be a resident in Spain, the contributor must hold at least 5% of the recipient entity's equity, and must have maintained said holding uninterruptedly during the previous year. Furthermore, the contributing entity may not have the management of movable or immovable property as its main activity, nor may it be an economic interest group or a temporary joint venture. The regime shall not apply if the primary objective of the transaction is tax fraud or evasion, or if it lacks valid economic reasons such as the rationalization of activities.

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