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V2636-15 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

The applicant asks whether the contribution of shares from one entity to another can qualify for the special regime under the Corporate Income Tax (CIT) Act. The DGT indicates that, for entity E being contributed to entity A, the requirements regarding shareholding, seniority, and valid economic reasons are met.

The question raised

1) Whether the described transaction may 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 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 recipient's equity following the transaction. In the case of shares, these must represent at least 5% of the equity of the contributed entity and must have been held uninterruptedly during the previous year. Furthermore, the transaction must respond to valid economic reasons and must not have fraud or tax evasion as its primary objective.

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