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V3465-16 20 July 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Special regime for non-monetary contributions applicable if LIS requirements and valid economic reasons are met

A taxpayer inquired whether contributing shares of non-resident and Spanish entities to a new holding company could qualify for the special restructuring regime. The DGT ruled that this is possible provided that participation and ownership requirements are met and the transaction is supported by valid economic reasons.

The question raised

Question posed: Whether the proposed operation could qualify for the special tax regime regulated in Chapter VII of Title VII of the Corporate Income Tax Act. And whether the economic reasons can be considered valid for the purposes of applying the aforementioned special regime. Significance of the operation regarding Corporate Income Tax, Personal Income Tax, and Transfer Tax and Documented Legal Acts Tax.

The DGT's ruling

The contribution of shares may qualify for the special regime under the Corporate Income Tax Act if the beneficiary entity is resident or has a permanent establishment, the contributor maintains at least 5% of the equity, and the shares have been held uninterruptedly during the previous year. Furthermore, the operation must not have the primary purpose of tax fraud or evasion and must respond to valid economic reasons. In the event this regime is applied, the contributor does not recognize income for Personal Income Tax purposes, and the shares maintain their values and acquisition dates.

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