Back to index
V5015-16 18 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión

Mergers may qualify for special Corporate Tax regime if commercial requirements and valid economic reasons are met

A query was raised regarding whether a merger between companies within a family group could benefit from the special Corporate Tax regime. The DGT indicates that, provided it complies with commercial regulations and Article 76.1.a) of the LIS, it may qualify as long as its primary purpose is not tax evasion or obtaining an unfair tax advantage.

The question raised

Question posed: Whether the described transaction may qualify for the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

To apply the special merger regime, the transaction must comply with commercial regulations and the requirements of Article 76.1.a) of the LIS. Furthermore, pursuant to Article 89.2 of the LIS, the transaction must be carried out for valid economic reasons, such as the restructuring or rationalization of activities, and not solely for the purpose of obtaining a tax advantage. The mentioned reasons of restructuring, improvement of solvency, and administrative simplification may be considered valid.

Apply this to a real case

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

Book a meeting Write to the firm
Email
Contact