Doctrine by topic · DGT Observatory

Tax Consolidation Group: 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

Refined position Medium confidence 8 rulings · 2014–2020

Current position

Dividends distributed among entities within the same tax consolidation group do not form part of the taxable base for installment payments as they are subject to elimination. The exclusion of entities from the tax group may result in a failure to comply with the maintenance of investment requirement under Article 42.8 of the TRLIS if the reorganization reduces the indirect holding. In cases of segregation, the resulting entity cannot join the group of entities until the following calendar year.

The DGT's position remains stable regarding the application of tax consolidation rules and the neutrality of internal dividends. An evolution is observed in the interpretation of the loss of entities from the group, moving from considering that the maintenance of investment is not breached (V2896-15) to determining that it does constitute a partial breach if the reorganization reduces the indirect holding (V3142-16).

Turning points

  1. V3142-16

    Establishes that the exclusion of entities from the tax group constitutes a partial breach of the investment maintenance requirement under Article 42.8 of the TRLIS by decreasing the indirect holding.

Analysis based on 7 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8
V2896-15 6 Oct 2015

The exclusion of a company from the tax consolidation group does not constitute a breach of the investment maintenance requirement

SG de Impuestos sobre las Personas Jurídicas
deducción por reinversión de beneficios extraordinariosgrupo de consolidación fiscalmantenimiento de la inversiónelementos patrimonialesentidades excluidas LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 56.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 74.1.b
Affects CompanyExpat · Non-residentIndividual

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