Skip to content
Back to index
V2731-23 6 October 2023 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidad dominante

A listed company remains a dominant entity if no other entity holds at least 70% of its share capital and the majority of voting rights

A Spanish listed company has requested a ruling on whether it would lose its status as a dominant entity within a tax group if the shareholding of its shareholders (natural persons acting in concert) were to exceed 70% of the share capital. The Directorate-General for Taxes (DGT) has ruled that it will not lose this status provided that no other entity holds a direct or indirect stake equal to or greater than 70% of the share capital and the majority of voting rights.

The question raised

Whether entity A will continue to hold the status of dominant entity of a tax group for the purposes of applying the tax consolidation regime provided for in the LIS, regardless of whether more than 70% of its share capital may belong, directly or indirectly, to natural persons who may coincide totally or partially, or act in a concerted manner and under a single direction.

The DGT's ruling

For a listed entity to maintain its status as a dominant entity, it must not be dependent on another entity that meets the requirements of a dominant entity. In this case, as long as entity C does not hold, throughout the entire tax period, a direct or indirect interest in entity A equal to or greater than 70% of its share capital and which confers the majority of voting rights, entity A shall continue to be the dominant entity of the tax group.

Book your free first meeting