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V3572-15 18 November 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión

SICAV merger by a fund may qualify for special Corporate Tax regime if requirements are met and economic motives exist

A SICAV has enquired whether its merger by absorption with a fund can apply the special Corporate Tax regime for merger operations. The DGT indicates that this is possible provided the requirements of Article 76.1 of the LIS are met and the transaction is driven by valid economic motives.

The question raised

Whether the described transaction 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 transaction may qualify for the special regime under Chapter VII of Title VII of the LIS if it is carried out in a commercial context and complies with the provisions of Article 76.1 of the LIS. The regime shall not apply if the primary objective is tax fraud or evasion, or if there are no valid economic reasons pursuant to Article 89.2 of the LIS. Reasons such as reduction of formalities, increased liquidity, and management efficiency may be considered economically valid.

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