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V3348-14 18 December 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · etve

Shareholders of an ETVE may apply the special regime for foreign holding entities

The query asks whether shareholders of an entity may apply the regime under Article 118 of the TRLIS regarding income from non-resident entities held through a subholding (B1). The DGT confirms that this is possible if the subholding is a purely instrumental entity whose income arises from non-resident entities meeting the exemption conditions under Article 21.

The question raised

Whether the shareholders of the consulting entity may apply the regime established in Article 118 of the Consolidated Text of the Corporate Income Tax Law, approved by Royal Legislative Decree 4/2004, of March 5, regarding income derived from or attributable to holdings in non-resident entities held through entity B1

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