Skip to content
Back to index
V3204-15 21 October 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · canje de valores

Fusion and split arrangements may apply under LIS special regime

A family group asks whether a share swap and partial split of an activity branch can qualify for the LIS special regime. The DGT confirms it is possible if voting majority, activity autonomy, and valid economic reasons are met.

The question raised

1) Whether the described operations may qualify for the special tax regime under Chapter VII of Title VII of Corporate Income Tax Law 27/2014, of November 27.

The DGT's ruling

The exchange of securities is applicable if the acquiring entity obtains the majority of voting rights and the requirements of Article 80 of the LIS are met. A partial spin-off requires that the segregated assets constitute an autonomous economic unit and that the demerged entity maintains another line of business. These operations must be carried out for valid economic reasons to avoid the tax fraud or evasion regime. The dividend exemption under Article 21 of the LIS shall be applicable if its specific requirements are met.

Book your free first meeting