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V2939-15 7 October 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión por absorción

Valid economic reasons allow for the special Corporate Income Tax regime and the ITPAJD exemption in mergers

A holding company inquires whether its merger by absorption project may qualify for the special Corporate Income Tax regime and whether the alleged reasons are valid. The DGT determines that the economic reasons presented are valid and that the operation could benefit from the special regime and the ITPAJD exemption.

The question raised

Question posed: Whether the application of the special regime under Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax is appropriate and whether the economic reasons presented are valid.

The DGT's ruling

If the merger is carried out within a commercial scope and complies with Article 76.1 of the LIS, it may qualify for the special regime. The reasons of administrative simplification and financial improvement are considered economically valid pursuant to Article 89.2 of the LIS. As a restructuring operation, it is not subject to the corporate operations modality in ITPAJD and is exempt under other modalities. Tax loss carryforwards may be transferred to the absorbing company subject to the requirements and limitations of Article 84 of the LIS and the 16th transitional provision.

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