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V2637-15 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 taxpayer inquires whether the contribution of shares can qualify for the special regime under the Corporate Income Tax Act (LIS). The DGT indicates that, for entity E being contributed to G, the requirements for minimum 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

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. In the case of shares, they must be held uninterruptedly during the previous year and the entity may not be a manager of movable or immovable property. 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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