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V3099-20 16 October 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Requirements for applying the fiscal neutrality regime to non-monetary contributions

Some partners inquire whether transferring their shares in two entities to a holding company may qualify for the fiscal neutrality regime. The DGT states that this is possible if the participation and ownership requirements are met, and the reasons given for reorganisation and family control may be considered valid economic grounds, subject to verification of facts.

The question raised

Question raised: Whether the contributions may qualify for the tax neutrality regime regulated in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, specifically, whether the reasons set forth can be considered valid economic reasons for the purposes of the provisions of Article 89.2 of the LIS.

The DGT's ruling

To apply the special regime for non-monetary contributions, the receiving entity must be a resident in Spain and the contributor must maintain a shareholding of at least 5% in the equity. In the case of natural persons, the holdings must have been held uninterruptedly during the year prior to the contribution. Furthermore, the transaction must not have the primary objective of tax fraud or evasion, and must respond to valid economic reasons. The proposed reasons of restructuring, government stability, or generational succession could be valid, although their classification depends on the reality of the 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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