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V2635-15 9 September 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

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

The taxpayer enquires whether the contribution of shares from one operating entity to another may qualify for the special regime under the Corporate Income Tax Act. The DGT rules that the transaction is eligible provided that the requirements regarding shareholding, uninterrupted ownership, and valid economic reasons are met.

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

For the contribution of shares or interests, the contributor must have held them uninterruptedly during the previous year and maintain at least 5% of the recipient entity's equity. The recipient entity must be a resident in Spain or have a permanent establishment, and it cannot be a holding company or an economic interest group. Furthermore, the transaction must respond to valid economic reasons and must not have the primary objective of tax fraud or evasion.

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