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V3936-15 9 December 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · rama de actividad

Property contribution could qualify for LIS special regime

A natural person asks whether contributing real estate and management assets to a company may allow use of the LIS special regime. The DGT states that if it constitutes a business activity and accounts are kept under the Commercial Code, such regime may apply.

The question raised

Whether the described operation 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

To apply the special regime, the contribution must consist of a branch of activity that constitutes an autonomous economic unit capable of operating by its own means. In this case, as it possesses material and human resources, the operation could qualify for the regime if the contributor maintains accounting records in accordance with the Commercial Code. Furthermore, the operation must have valid economic reasons and its primary objective must not be tax advantage.

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