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V2983-19 25 October 2019 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportaciones no dinerarias

Requirements for the special non-cash contributions and share exchange regime

A taxpayer asks whether integrating their shares in various entities into a holding company may qualify for the LIS special regime. The DGT states that this is possible if participation and ownership requirements are met and economic justifications are valid.

The question raised

Question raised: Whether the described transaction may qualify for the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, and whether valid economic reasons exist.

The DGT's ruling

For non-monetary contributions, it is required that the recipient entity be a resident in Spain, that the contributor holds at least 5% of the equity of the recipient entity, and that the contributed shares represent at least 5% of the equity of the contributed entities, having been held uninterruptedly during the previous year. In the case of a securities exchange, the entity must acquire the majority of the voting rights. The regime shall not apply if the main purpose of the transaction is tax fraud or evasion, or if it lacks valid economic reasons such as the restructuring or rationalization of activities.

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