Back to index
V2609-20 31 July 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · canje de valores

Value exchange regime may apply if LIS requirements and valid economic motives are met

A majority shareholder asks whether a value exchange restructure can qualify for the special tax regime without taxation. The DGT states that this is possible if a majority of voting rights is acquired, the requirements of Article 80 of the LIS are met, and the operation has valid economic motives rather than purely fiscal ones.

The question raised

Question posed: Whether the restructuring operation proposed in the consultation request may qualify for the special tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, and whether its application would result in the absence of taxation for both the companies involved and the shareholder, in application of the aforementioned special regime.

The DGT's ruling

To apply the special regime for the exchange of securities, the entity must acquire holdings that allow it to obtain the majority of voting rights and comply with the requirements of Article 80 of the LIS. This regime shall not apply if the main objective of the operation is fraud, evasion, or the mere obtaining of a tax advantage without valid economic reasons. Reasons of management simplification, financial strengthening, or generational succession could be considered valid, although their classification depends on the specific facts.

Apply this to a real case

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

Book a meeting Write to the firm
Email
Contact