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V2576-23 26 September 2023 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · neutralidad fiscal

Fiscal neutrality regime applicable to social share contributions if conditions met

A taxpayer asks whether contributions of shares in one company to another may benefit from the special fiscal neutrality regime. The DGT states this is possible if minimum participation and uninterrupted ownership requirements are met, provided it is not for tax fraud or evasion.

The question raised

Whether the described transaction could qualify for the regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, as well as whether the reasons set forth can be considered economically valid.

The DGT's ruling

For the contribution of social shares by a natural person to qualify for the tax neutrality regime, the receiving entity must be a resident in Spain and the contributor must have held the shares uninterruptedly during the previous year. Furthermore, following the transaction, the contributor must hold at least 5% of the equity of the entity receiving the contribution. Finally, the transaction must not have the primary objective of tax fraud or evasion, but rather valid economic reasons.

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