New participation exemption regime in the Corporate income tax of the Basque country territories within Spain

New participation exemption regime in the Corporate income tax of the Basque country territories within Spain

Abstract:

This article analyses the tax modifications recently approved in the three provinces of the Basque Country (Álava, Bizkaia and Gipuzkoa). The reform introduces for the first time in Spain the participation exemption regime on Corporate Income Tax from capital gains obtained in the transfer of shares in companies resident in Spain or abroad.
The tax implications of the new regime in other tax benefits and in venture capital entities are also discussed in the article.

Keywords: participation exemption, venture capital, Basque Country tax regime.