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V2896-15 6 October 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deducción por reinversión de beneficios extraordinarios

The exclusion of a company from the tax consolidation group does not constitute a breach of the investment maintenance requirement

A query is made as to whether the exit of companies that carried out the reinvestment from the tax consolidation group constitutes a breach of the asset maintenance requirement. The DGT responds that there is no breach if the reinvested element remains in the assets of the entity that carried out the reinvestment.

The question raised

Question posed 1) Whether, in relation to the deduction for reinvestment of extraordinary profits, the obligation to maintain the assets subject to reinvestment established in Article 42.8 of the TRLIS is understood to be breached by the exclusion from the tax consolidation group of the reinvesting companies when these companies were different from those that generated the capital gain within the tax consolidation group.

The DGT's ruling

The exclusion of entities from the tax group does not breach the investment maintenance requirement of Article 42.8 of the TRLIS, provided that the element subject to reinvestment remains in operation within the assets of the entity that carried out the reinvestment until the legal period is fulfilled. In the event of loss of the consolidation regime, the pending deduction shall be attributed to the excluded entities in proportion to their contribution to its formation.

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