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V2634-15 9 September 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Requirements for the special regime for non-monetary contributions under the CIT Act

A taxpayer has queried whether the contribution of shares from an operating entity to another company may qualify for the special regime under the Corporate Income Tax Act. The DGT determines that, for entity E, the requirements regarding participation and ownership are met, although it issues a warning regarding the recipient's status as a holding company.

The question raised

1) Whether the described transaction can qualify for the special tax regime under Chapter VII of Title VII of Corporate Income Tax Law 27/2014, of November 27.

The DGT's ruling

To apply the special regime for non-monetary contributions, the receiving entity must be a resident in Spain and the contributor must maintain a shareholding of at least 5% in its equity. In the case of shares, these must be held uninterruptedly during the previous year and the entity must not be a manager of movable or immovable property. The transaction must have valid economic reasons, such as the restructuring or rationalization of activities, and must not have tax advantage as its primary purpose.

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