Restructuring transactions between companies of the same group: accounting and tax implications

Restructuring transactions between companies of the same group: accounting and tax implications

Abstract:

Restructuring transactions between companies of the same group are complex transactions that must be analysed from various perspectives, accounting and taxation being two of the most important. Both Royal Decree 1514/2007 of 16 November approving the new Spanish Accounting Plan (Plan General de Contabilidad) and Royal Legislative Decree 4/2004 of 5 March approving the revised text of the Corporate Income Tax Law establish specific rules for this type of transaction. This article analyses the aspects of the accounting and tax regulations applicable to
intragroup restructuring transactions that, owing to their novelty and complexity, are drawing most interest from academic writers.

Keywords: Restructuring transactions, accounting, Spanish Accounting Plan, taxation, Spanish Corporate Income Tax Law, special tax regime, merger, demerger, contribution in kind, share for share exchange, trans