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V2791-15 25 September 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Non-cash contributions may qualify under special regime if economic grounds exist

A taxpayer asks whether contributing shares from a company to a holding company may qualify under the special merger and spin-off regime. The DGT states that such a regime applies if participation and residency requirements are met and the operation's motives are economic rather than purely fiscal.

The question raised

Question posed: Whether the described non-monetary contribution is eligible for the special tax regime, and in particular whether the motives alleged for making the non-monetary contribution can be considered valid for the application of the special tax regime of Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

To apply the special regime for non-monetary contributions, the residency requirements of the receiving entity, a minimum participation of 5% in equity, and uninterrupted ownership of the shares during the previous year must be met. Furthermore, the operation must not have the primary objective of tax fraud or evasion, but rather valid economic motives such as the restructuring or rationalization of activities. Motives of treasury efficiency, risk limitation, and family succession planning may be considered valid pursuant to Article 89.2 of the LIS.

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