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V2402-24 25 November 2024 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · neutralidad fiscal

Tax neutrality applies to mergers provided the objective is not tax fraud or evasion

The inquiry seeks clarification on the application of the tax neutrality regime in mergers involving tax savings. The DGT rules that the regime applies as long as the primary objective is not fraud or evasion, thereby permitting tax planning through choice of option.

The question raised

Question posed A clarification is requested regarding the content of inquiry V1773-23, dated June 22, 2023, concerning the application of 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

The tax neutrality regime for restructurings shall not apply if the primary objective of the transaction is tax fraud or evasion. The absence of valid economic motives (such as restructuring or rationalization) constitutes a presumption of such an objective, but it is not an indispensable requirement. Obtaining a tax advantage is legitimate within the scope of tax planning, provided that the transaction pursues a reasonable business objective.

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