Back to index
V3842-15 2 December 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · régimen especial de fusiones

Holding company merger may qualify for special regime if valid economic reasons exist

A query was raised regarding whether a merger of holding companies, intended to centralise management and optimise resources, can apply the special merger regime. The DGT ruled that if the operation is driven by valid economic reasons and is not primarily aimed at obtaining a tax advantage, it may qualify for said regime.

The question raised

Question posed: Whether the proposed transaction may qualify for the special regime of Chapter VII of Title VII of the Corporate Income Tax Law, and whether the reasons set forth are considered economically valid for these purposes.

The DGT's ruling

To apply the special merger regime (Chapter VII of Title VII of the LIS), the transaction must be carried out within a commercial scope and comply with the requirements of the LIS. The existence of negative tax bases or pending deductions does not invalidate the regime if the predominant purpose is not their exploitation. The reasons of structural rationalization, resource optimization, and financial reinforcement are considered economically valid pursuant to Article 89.2 of the LIS.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Book a meeting Write to the firm
Email
Contact