{"id":15958,"date":"2017-11-28T11:46:48","date_gmt":"2017-11-28T10:46:48","guid":{"rendered":"https:\/\/www.notarialuisprados.com\/la-fiscalidad-de-las-fusiones\/"},"modified":"2023-05-26T12:56:26","modified_gmt":"2023-05-26T10:56:26","slug":"the-taxation-of-mergers","status":"publish","type":"post","link":"https:\/\/www.notarialuisprados.com\/en\/la-fiscalidad-de-las-fusiones\/","title":{"rendered":"THE TAXATION OF MERGERS"},"content":{"rendered":"

<\/p>\n

In the merger of companies, the corporate tax, the property transfer tax, the value added tax and the tax on the increase in the value of urban land may come into play. The application of each of the taxes rests on different criteria, which must be taken into account. The formalization of numerous merger operations prompts me to make a very brief reference to their tax treatment, as an ultra-quick guide:<\/p>\n

A.- CORPORATE TAX<\/strong><\/span>.<\/h2>\n

In corporation tax, a merger generates in the transferring entity (absorbed) an income for the difference between the normal market value of the elements transferred and their book value, corrected, if applicable, by the tax adjustments derived from the transfer.<\/p>\n

However, this general regime, in practice, constitutes the exception, since in most cases the companies involved in a merger process seek to avail themselves of the tax deferral regime, which consists of not paying for the merger, with the consideration that the elements received by the absorbing company are carried out with the value and seniority they had in the absorbed company.<\/p>\n

Well, in corporate tax, the adoption of the special tax regime derives from the fact that the merger does not have fraud or tax evasion as its main reason, or is carried out for valid economic reasons, that is to say that the merger is only intended to achieve a tax advantage. On the contrary, when the cause of the merger is merely fiscal, regardless of any different economic reason, the special regime does not apply.<\/p>\n

B.- VALUE ADDED TAX<\/strong><\/span>.<\/h2>\n

Within the scope of this tax, article 7 of Law 37\/1192, declares not subject to the transmissions of a set of tangible and intangible assets, which, forming part of a business or professional heritage of the taxpayer, constitute an economic unit. Doubts that may arise regarding the concept of economic unit are determined when the transferor company (absorbed) constitutes a so-called patrimonial or mere property holding company, which is dedicated to leasing real estate.<\/p>\n

It must be remembered that the leasing of real estate in accordance with tax regulations (article 27 LIRPF) is considered to constitute a business activity\u00a0\u00a0when at least one person employed with a labor contract and full-time is used<\/strong>eta.\"\"<\/a> <\/em><\/cite><\/p>\n

This criterion has been in force since January 1, 2015, since previously it was necessary, in addition, to that in the development of the activity there is at least one premises exclusively dedicated to managing it.<\/strong><\/p>\n

In those cases in which, due to concurrent circumstances, there is no transfer of an economic unit, the transferred elements may be subject to value added tax., without prejudice to the possibility of waiving the VAT exemption, with the consequent reversal of taxpayer<\/strong><\/p>\n

C.- PROPERTY TRANSMISSIONS TAX<\/strong><\/span>.<\/h2>\n

Restructuring operations, including mergers, are declared not subject to the property transfer tax, in the form of corporate operations. And on the other hand, merger operations are declared exempt in the form of asset transfers and documented legal acts. With which it can be affirmed the absence of taxation in this tax of a merger operation.<\/p>\n

D.- MUNICIPAL CAPITAL CAPITAL TAX<\/strong><\/span><\/h2>\n

Finally, in the tax on the increase in the value of urban land, non-subjection is declared, when the operation meets the requirements established to enjoy tax benefits in corporate tax, with the counterpart that the acquisition of the Items received by the absorbing company are carried out with the value and seniority they had in the absorbed company.<\/p>\n

E.- SUMMARY.<\/strong><\/span><\/h2>\n

The "non-taxation" of the merger, either by exemption or non-subjection, depends on:<\/p>\n

In the corporate tax of the existence of a valid economic reason.<\/p>\n

In the value added tax that an economic unit is transmitted.<\/p>\n

In the property transfer tax, documented legal acts and corporate operations, there will be no taxation in any case<\/p>\n

In the capital gains tax of the previous "non-taxation" in the corporation tax.<\/p>\n

F.- TAXATION OF THE PARTNERS OF THE COMPANIES INVOLVED IN THE MERGER<\/span>.<\/h2>\n

I have decided to introduce this section, especially because of the queries that have been raised at the Notary, and thus give the image that a blog is an open and updatable form of expression.<\/p>\n

This matter is regulated in article 81 of the Corporation Tax Law, which results very briefly, that if there is a valid economic reason for the merger and the circumstances of that provision exist<\/strong>, , the income resulting from the attribution of values of the acquiring entity is not included in the tax bases of the partners of the transferring companies, giving rise to the so-called deferral of the investment.<\/p>\n

In the event that the special regime is not applied, the aforementioned operations would produce taxable income for the partners for the difference between the real value of the values received and the value of what was delivered.<\/p>\n

Version updated on March 11, 2016.<\/strong><\/p>\n

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 <\/p>","protected":false},"excerpt":{"rendered":"

En la \u00a0fusi\u00f3n de sociedades, pueden entrar en juego el impuesto de sociedades, el impuesto de trasmisiones patrimoniales, el impuesto sobre el valor a\u00f1adido y el impuesto sobre el incremento del valor de los terrenos de naturaleza urbana. La aplicaci\u00f3n de cada uno de los impuestos descansa sobre criterios diferentes, […]<\/p>\n","protected":false},"author":3,"featured_media":15959,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[32,35],"tags":[],"class_list":["post-15958","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-derecho-fiscal","category-derecho-mercantil"],"jetpack_featured_media_url":"https:\/\/www.notarialuisprados.com\/wp-content\/uploads\/2023\/05\/stock-photo-19290450-idea-machine.jpg","_links":{"self":[{"href":"https:\/\/www.notarialuisprados.com\/en\/wp-json\/wp\/v2\/posts\/15958","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.notarialuisprados.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.notarialuisprados.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.notarialuisprados.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.notarialuisprados.com\/en\/wp-json\/wp\/v2\/comments?post=15958"}],"version-history":[{"count":2,"href":"https:\/\/www.notarialuisprados.com\/en\/wp-json\/wp\/v2\/posts\/15958\/revisions"}],"predecessor-version":[{"id":16472,"href":"https:\/\/www.notarialuisprados.com\/en\/wp-json\/wp\/v2\/posts\/15958\/revisions\/16472"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.notarialuisprados.com\/en\/wp-json\/wp\/v2\/media\/15959"}],"wp:attachment":[{"href":"https:\/\/www.notarialuisprados.com\/en\/wp-json\/wp\/v2\/media?parent=15958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.notarialuisprados.com\/en\/wp-json\/wp\/v2\/categories?post=15958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.notarialuisprados.com\/en\/wp-json\/wp\/v2\/tags?post=15958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}