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V2564-20 28 July 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Non-cash contributions may qualify under LIS special regime

A natural person enquires whether a 100% contribution from a company to a Spanish resident holding company may benefit from the LIS special regime. The DGT states that this is possible if participation and ownership requirements are met, and the economic justifications put forward may be valid.

The question raised

Question posed: Whether the described transaction 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 and whether valid economic reasons exist.

The DGT's ruling

To apply the special regime for non-monetary contributions, the recipient entity must be a resident in Spain or have a permanent establishment, and the contributor must maintain a shareholding of at least 5% in the entity's equity following the transaction. In the case of shares, these must represent at least 5% of the equity of an entity that is not a SIE, a UTE, or a wealth management company, and must have been held uninterruptedly during the previous year. The economic reasons alleged for the transaction could be considered valid pursuant to Art. 89.2 of the LIS, although this depends on the reality of the facts.

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What is published here, applied to a company or a specific case. The first meeting is free.

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