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A query was raised regarding whether a partial spin-off of activities could qualify for the special regime under the Corporate Tax Act. The DGT ruled that, as a distinct and autonomous business organisation for each activity was not demonstrated, the transaction fails to meet the necessary tax requirements.
Companies undertaking partial spin-offs must ensure that each segregated business line operates as a distinct and autonomous economic unit to benefit from the special tax regime.
The tax team reviews your specific situation.
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