Back to index
V3178-17 12 December 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Requirements for the special regime for asset contributions and dividend exemption

A taxpayer inquires whether the contribution of shares from a French entity to a new company can qualify for the special regime under the Corporate Income Tax Act. The DGT states that requirements regarding shareholding percentages, uninterrupted ownership, and valid economic reasons must be met.

The question raised

Question raised 1) Whether the described operation 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

To apply the special regime for contributions of assets, the holdings must represent at least 5% of the equity and must have been held uninterruptedly during the previous year. The receiving entity must be a resident in Spain or have a permanent establishment. Furthermore, the operation may not have the primary objective of tax fraud or evasion and must respond to valid economic reasons. Regarding the dividend exemption, the minimum holding requirements must be met and, if the entity is a non-resident, it must be subject to an analogous foreign tax of at least 10%.

Email
Contact