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V4913-16 14 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión

Merger of a Collective Investment Scheme by absorption may qualify for special Corporate Tax regime if legal and economic requirements are met

A collective investment scheme (CIS) has requested a ruling on whether its merger by absorption with another fund can apply the special Corporate Tax regime and if its underlying motives are considered economic. The Directorate General for Taxes (DGT) responds that this is possible provided the requirements of the Corporate Tax Act are met and considers that the motives presented may be valid.

The question raised

Whether the aforementioned transaction may qualify for the special tax regime under Chapter VII of Title VII of the LIS and whether the reasons set forth may be considered valid economic reasons for the purposes of the provisions of Article 89.2 of the LIS.

The DGT's ruling

If the transaction is carried out within a commercial scope and complies with Article 76.1 of the LIS, the merger of an IIC may qualify for the special regime. The reasons of management concentration, improvement of investment policies, cost savings, economies of scale, and increased liquidity may be considered valid economic reasons pursuant to Article 89.2 of the LIS. Notwithstanding, the application of the regime remains subject to administrative verification of all circumstances of the transaction.

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