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V4137-15 23 December 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · grupo fiscal

The fiscal group does not cease if the dominant entity changes to a non-resident in Spain

The consultant asks whether transferring shares in 2015 extinguishes their fiscal group. The DGT responds that the group remains intact because the new dominant entity is a non-resident and the group's structure remains unchanged.

The question raised

Question raised 1) Whether the exception to the extinction of the tax group provided for in section 2 of the Twenty-Fifth Transitional Provision of Law 27/2014, of November 27, on Corporate Income Tax, would be extendable and applicable in the present case, such that the Tax Group would not be extinguished on December 31, 2015, as a consequence of the transfer of 100% of the shares of the consulting entity to entity L in March 2015.

The DGT's ruling

The tax group is not extinguished when the parent entity loses its status and becomes a non-resident in Spanish territory, provided that the conditions are met so that the subsidiaries continue to constitute a tax consolidation group. In this case, negative tax bases and pending deductions to be offset may continue to be applied in subsequent periods. The non-resident parent entity must designate the representative entity of the group by means of an agreement communicated to the Administration.

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