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V2770-20 10 September 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Neutral tax regime applicable to non-monetary share contributions if conditions met

A taxpayer asks whether a non-monetary contribution of shares in one entity to another may benefit from the special neutral tax regime. The DGT states this is possible if the shareholding and ownership requirements are met and valid economic reasons exist.

The question raised

Question posed: Whether the described non-monetary contribution transaction may qualify for the special tax neutrality regime regulated in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, indicating in particular, whether the reasons set forth in the preceding fact constitute valid economic reasons for the purposes of article 89.2 of the aforementioned regulation.

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 stake of at least 5% in the entity's equity following the transaction. Furthermore, the transaction must not have the primary objective of tax fraud or evasion, and must be carried out for valid economic reasons rather than the mere pursuit of a tax advantage. Reasons such as centralization of management, reinvestment of income, improvement of financing, and simplification of succession could be considered valid, although their classification depends on the specific facts.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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