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V4147-16 27 September 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · canje de valores

Special IS and ITPAJD regime applicable to holding company share contributions

A family group asks whether transferring shares from several companies to a parent company (X) can benefit from the special regime under the Corporate Income Tax Law. The DGT confirms that both share exchange and non-cash contributions are eligible, provided legal requirements are met and economic motives are present.

The question raised

Whether the proposed operation could qualify for the special tax regime regulated in Chapter VII of Title VII of the Corporate Income Tax Law. And whether the economic motives can be considered valid for the purposes of applying the aforementioned special regime. Effects of the contribution on individual shareholders.

The DGT's ruling

The contribution of shares in A, B, D, and E to entity X may qualify for the share exchange regime (Art. 76.5 and 80.1 LIS). The contribution of the share in C by PF3 may qualify for the non-monetary contribution regime (Art. 87 LIS). The motives for the operation are considered economically valid pursuant to Art. 89.2 LIS. Furthermore, the shares in the holding entity could be exempt from Wealth Tax if the requirements of Art. 4.Eight.Two of Law 19/1991 are met.

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