Until two years ago, carrying out the restructuring of a business group that included local entities had to face, among other obstacles, its fiscal cost. In 2021, a first step is taken by establishing, through regulation, the option of not computing goodwill in the case of mergers or divisions of companies that meet certain conditions. But that measure was not enough, since it did not contemplate one of the most common mechanisms for restructuring, which is the transfer of equity interests (e.g. shares).
The Law takes a step, and in addition to the option of not computing the goodwill – which is now given a legal and mandatory status –, the Law exempts from Income Tax on Business Activities (IRAE) and of the Personal Income Tax (IRPF) to the transfers of equity interests when certain conditions are met.
Benefits for mergers and spin-offs
The Law reproduces, with some variations, the regime that had been established by means of a regulatory decree within the framework of the IRAE; In other words, it confers the force of law on the pre-existing regime. One of these variants is that the regime will no longer be optional, but mandatory.
The rule establishes that… Read more
