Back to index
V2717-15 21 September 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · canje de valores

Special share exchange regime applicable if LIS requirements are met and valid economic reasons exist

An individual has enquired whether projected share exchange operations intended to reorganise their group of companies may qualify for the special regime. The DGT responds that this is possible provided that the requirements of the Corporate Income Tax Act (LIS) are met and the primary purpose of the transaction is not to obtain a tax advantage.

The question raised

Question posed: Whether the special tax regime of Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax is applicable to the described exchange of shares transactions.

The DGT's ruling

The special regime for exchange of shares is applicable if the acquiring entity obtains the majority of voting rights in the other entity and the residence and valuation requirements of Article 80 of the LIS are met. Furthermore, the transaction must not have the primary objective of tax fraud or evasion, and must respond to valid economic reasons pursuant to Article 89.2 of the LIS. The reasons of reorganization, administrative simplification, and financial efficiency set forth may be considered economically valid.

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