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V3237-16 11 July 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión

Possibility of opting for the special merger regime for Collective Investment Schemes subject to compliance with requirements

An investment management company has enquired whether the merger of several investment funds can qualify for the special merger regime and if its underlying reasons are considered economic. The Directorate General of Taxes (DGT) responds that this is possible provided the requirements of the Corporate Income Tax Act are met and the stated reasons are valid.

The question raised

Question raised 1. Whether the aforementioned operations may benefit from the special tax regime under Chapter VII of Title VII of the Corporate Income Tax Act and whether the reasons set forth may be considered valid economic motives for the purposes of Article 89.2 of the Corporate Income Tax Act.

The DGT's ruling

Merger operations between Collective Investment Schemes (CIS) may benefit from the special regime of the Corporate Income Tax Act if they are carried out for commercial purposes and comply with Article 76.1. The motives of concentrating assets, improving diversification, reducing administrative procedures, increasing liquidity, avoiding conflicts of interest, and improving marketing are considered valid economic motives pursuant to Article 89.2. If both the absorbing and the absorbed entities are taxed at 1%, the rule regarding linearly generated income from Article 77.1 does not apply.

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