Doctrine by topic · DGT Observatory

Eliminations: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 17 rulings · 2014–2024

Current position

The tax base of the tax group is determined by summing the individual tax bases of the constituent entities and applying the corresponding eliminations. For the exemption of income from the transfer of shares, compliance with the requirements regarding participation and holding must be assessed at the tax group level. If the holding is not uninterrupted at the group level in the year prior to the transfer, the positive income from the internal transaction shall not be exempt.

The DGT's position remains constant regarding the mechanics of determining the tax base through the summation of individual bases and the application of eliminations for internal transactions. The doctrine has specified that the assessment of requirements for exemptions, such as uninterrupted holding, must be carried out considering the perspective of the tax group and not just that of the individual entity.

Turning points

  1. V1881-24

    Establishes that compliance with the requirements for participation and holding for the exemption under article 21.3 LIS must be assessed at the tax group level.

Analysis based on 16 of 17 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

17
V1881-24 8 Aug 2024

Internal transfer of shares not exempt if group-level holding period is not met

SG de Impuestos sobre las Personas Jurídicas
consolidación fiscalexención de rentastransmisión de participacionesgrupo fiscaleliminaciones LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 18.2.d
Affects CompanyExpat · Non-residentIndividual
V0048-17 13 Jan 2017

Individual tax base must align with the hedge classification applied at the tax group level

SG de Impuestos sobre las Personas Jurídicas
consolidación fiscalcobertura de flujos de efectivocobertura de la inversión neta de negociosbase imponible individualeliminaciones LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 23
Affects CompanyExpat · Non-residentIndividual
V3153-15 19 Oct 2015

Deductible deterioration reversal must be removed from consolidated tax base

SG de Impuestos sobre las Personas Jurídicas
consolidación fiscaldeterioro de valorreversión de deteriorobase imponible consolidadaeliminaciones LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 13.2.bLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 20
Affects CompanyExpat · Non-residentIndividual

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