SICAV Partner: Income derived from SICAV liquidations

With effect for tax periods beginning on or after January 1 2022, the forty transitional provision of the LIS establishes that in the tax period beginning before January 1, 2022 were paying taxes at the reduced tax rate of 1 percent established in article 29.4 a) of the LIS as amended as of December 31, 2021, and during agree their dissolution and liquidation, may apply tax regime provided for in the transitional provision provided that meet the requirements:

1. During the year 2022, validly adopt the dissolution agreement with liquidation . The deadline for adopting this agreement is therefore 31 December 2022.

2. Subsequent to the agreement, within six months after the deadline for adopting said agreement (December 31, 2022), carry out all the necessary legal acts or transactions according to commercial regulations until the registration cancellation of the company in liquidation. Therefore, the period for carrying out all the legal acts and transactions necessary to liquidate the company until its registration cancellation ends on June 30, 2023, although nothing prevents said operations from being concluded within the year 2022.

SICAVs that agree to dissolution with liquidation in accordance with the above will temporarily apply the following tax regime :

1. During tax periods beginning on or after January 1, 2022 and ending up until the registration cancellation, the SICAV in liquidation will continue to pay taxes at the reduced tax rate of 1 percent, provided that the number of shareholders is equal to or greater than 100, regardless of the purchase price of their shares in the SICAV.

2. The partners of the SICAV in liquidation will not include in the tax base the income derived from the liquidation of the company, provided that they reinvest all of the money or assets (a partial reinvestment is not possible) that corresponds to them as a liquidation share in one or more collective investment institutions provided for in letters a) or b) of article 29.4 of the LIS. The new shares or interests acquired or subscribed will retain the value and date of acquisition of the shares of the company subject to liquidation. The reinvestment must be made before seven months have elapsed from the end of the period established to validly adopt the resolution of dissolution with liquidation of the SICAV (December 31, 2022), so the deadline to make the reinvestment ends on July 31, 2023, although nothing prevents said reinvestment from being carried out within the year 2022. When the partner opts for the reinvestment regime provided for here, there will be no obligation to make payments on account of the corresponding personal tax of the partner on the income derived from the liquidations of the SICAV.

   The partner must notify the company in liquidation of his decision to accept reinvestment, and must provide documentation proving the date and value of acquisition of the shares, in the event that the company does not have such information. In addition, partner will inform the collective investment institution in which he will make the reinvestment of his own identification data, those corresponding to the company in liquidation and its management entity and depositary entity, as well as the amount of money or assets comprising the liquidation quota to be reinvested in the destination institution. For these purposes, the partner will complete the corresponding subscription or acquisition order , authorizing said institution to process said order before the company in liquidation. Once the order has been received by the company in liquidation, the reinvestment must be carried out by means of the transfer ordered by the latter to its depositary, on behalf of and by order of the partner, of the money or assets subject to reinvestment, from the accounts of the company in liquidation to the accounts of the collective investment institution in which the reinvestment is to be carried out. Such transfer shall be accompanied by information regarding the values and dates of acquisition of the shares of the company in liquidation to which the reinvestment corresponds.

This special regime will not be applicable to the cases of dissolution with liquidation of free investment companies, nor of listed variable capital index investment companies.

Filling in form 200

In application of the special tax regime provided for in the forty-first transitional provision of the LIS, the partners of the SICAV will not include in their tax base the income derived from the liquidation of the entity, provided that they reinvest the total amount of money or assets that correspond to them as a liquidation share in the manner and under the conditions provided for in said provision, so in these cases they must make a negative adjustment for said amount in box [01014] "SICAV Partner: Income derived from liquidations of SICAVs (DT 41. 2 LIS)» on page 13 of form 200.