Skip to content
Back to index
V2731-17 25 October 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión

Centralising activities and hiring staff could constitute valid economic reasons for a merger

A consulting entity intends to merge three family-owned real estate leasing companies to centralise operations and hire a full-time employee. The DGT indicates that these reasons could be economically valid for qualifying for the special merger regime.

The question raised

Whether it is considered that valid economic reasons exist to carry out the operation.

The DGT's ruling

If the merger and the contribution of real estate are carried out under the Structural Changes Law and meet the requirements of the LIS, they could qualify for the special regime. The centralization of activity and the rationalization of management through the hiring of personnel could be valid economic reasons pursuant to Article 89.2 of the LIS. However, the administration may verify all circumstances to determine whether the primary purpose is tax advantage.

Book your free first meeting