Back to index
V5088-16 24 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · canje de valores

Tax neutrality regime may apply to share contributions if exchange or non-monetary contribution requirements are met

An entity has requested clarification on whether contributing shares in various companies to a new company (NewCo) can qualify for the special tax neutrality regime and if its underlying economic motives are valid. The DGT ruled that this is possible depending on the type of contribution and the resulting shareholding, and that the stated motives are valid.

The question raised

Question posed: Whether the described operation meets the necessary requirements to qualify for the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax. And whether the motives set forth are considered valid economic motives for these purposes.

The DGT's ruling

For the exchange of securities, it is required that the NewCo obtains the majority of voting rights, that the partner is a resident in Spain or the EU, and that the beneficiary complies with the requirements of the Directive. For non-monetary contributions, the contributor must maintain at least 5% of the equity of the receiving entity. Restructuring motives for expansion and risk isolation are considered economically valid. To determine whether an entity is a holding company, its status must be analyzed during all periods of ownership.

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