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V4320-16 6 October 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de grupo de entidades

Possibility of maintaining group entity special regime after share swap with foreign subsidiary

A dominant entity plans to establish a UK subsidiary via a share swap, transferring 100% of its current subsidiary holdings. Tax authorities state the dominant entity may continue applying the special group regime if it maintains indirect control exceeding 50%.

The question raised

Issue raised: Effects of the exchange of securities operation on the Special Regime for Groups of Entities

The DGT's ruling

The parent entity may maintain the financial link indirectly through holdings in intermediate companies, even if these are not located within the territory subject to the Tax. If, following the exchange of securities, the parent entity maintains a percentage greater than 50% of the capital or voting rights of the subsidiaries, it may continue to apply the special group of entities regime provided that the other legal requirements are met.

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

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