4.2.43 Codes 00347 and 00348 lucrative and corporate transmissions: Application of market value (Article 17.4 LIS)
According to the provisions of section 4 of article 17 of the LIS , the following assets will be valued at their market value:
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Those transmitted or acquired for profit. Subsidies will not be considered as such.
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Those contributed to entities and securities received in consideration, unless the regime provided for in Chapter VII of Title VII of this Law is applicable or in the case of operations to increase capital or equity by offsetting credits.
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Those transferred to partners due to dissolution, separation of the same, reduction of capital with return of contributions, distribution of the issue premium and distribution of profits.
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Those transferred by virtue of a total or partial merger or spin-off, unless the regime provided for in Chapter VII of Title VII of this Law is applicable.
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Those acquired by exchange.
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Those acquired by exchange or conversion, unless applicable to the regime provided for in Chapter VII of Title VII of this Law.
Market value shall be understood as that which would have been agreed between independent parties. To determine this value, the methods provided for in article 18.4 of the aforementioned LIS will be applied.
Taxpayers involved in the operations referred to in the previous letters must include in keys [00347] (increases) and [00348] (decreases), completing, where appropriate, their corresponding breakdown boxes, the adjustments derived from applying the following rules:
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The transferring entity must include in its tax base the difference between the market value of the transferred items and their tax value.
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The partners of said entity will include in their tax base the difference between the market value of the participation received and the tax value of the participation cancelled.
Note:
Market value shall be understood as that which would have been agreed upon under normal market conditions between independent parties, and any of the methods provided for in article 18.4 of the LIS may be admitted.