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V4692-16 4 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · transformación societaria

Converting a SICAV into a limited company triggers the end of the tax period and a new tax regime

The taxpayer asks whether converting a SICAV into a limited company (SL) triggers Article 27.2 d) of the Corporate Income Tax Act (LIS). The Directorate General for Taxes (DGT) rules that it does, as the change in tax rate and legal regime necessitates closing the tax period and applying special rules for income from assets.

The question raised

1) Whether the transformation of the entity S SICAV into an SL would result in the application of Article 27.2 d) of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

The transformation of the corporate form or modification of the legal regime that entails a change in the tax rate or tax regime concludes the tax period. In this case, the transition from a SICAV (1% rate) to an SL (general rate) fulfills both requirements. The income from assets transferred following the transformation shall be calculated linearly over the period of ownership, with the portion generated up to the transformation being taxed under the previous regime.

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