The Directorate General for Taxation issued a binding consultation clarifying the tax treatment for partners who opted for the reinvestment regime.

The Directorate General for Taxation (DGT V1/2024 of 22/01/2024) has issued a binding consultation on the tax treatment applicable to members of an open-ended investment company (SICAV) who have opted for the reinvestment regime established in the Corporate Income Tax Law (LIS) in the context of a transitional regime of dissolution and liquidation.

When new assets arise for the benefit of the dissolved SICAV after the liquidation share has been determined and allocated to each member, and even after the amount corresponding to the liquidation share has been reinvested, these surplus assets must be reinvested by the members. Compliance with this total reinvestment requirement requires that the money or assets making up the additional share of the partner's share derived from a surplus asset be reinvested in shares or units in Collective Investment Institutions (CIIs) in accordance with the provisions of the LIS. The deadline for making this reinvestment and the procedure to be followed must comply with the provisions of the corresponding regulations.

The information on the reinvestment of the assets or rights and on the award of assets to the partners must be provided to the tax authorities using the corresponding tax forms.

Do you have any questions?