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V3864-16 13 September 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Contribution of rural property share deemed special non-monetary contribution (Art. 87.1 LIS)

An farmer asks whether contributing his share of an agricultural estate to a company constitutes an activity branch contribution or a special non-monetary contribution. The DGT rules that, as the property is held in undivided share, it constitutes a special contribution under Article 87.1 LIS.

The question raised

Whether, regarding the aforementioned non-monetary contribution to company A from the cited agricultural company, the provisions of Article 87.2 LIS would apply or if the provisions of Article 87.1 LIS would apply

The DGT's ruling

The contribution cannot be a branch of activity (Art. 87.2 LIS) because only a fractional share of the ownership of community property is contributed. It is considered a special non-monetary contribution (Art. 87.1 LIS), and may qualify for the deferral regime if the requirements of entity residence, minimum 5% participation, and allocation to economic activities with commercial accounting are met. For accounting purposes, it is sufficient to maintain it since the fiscal year prior to the contribution.

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