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An entity has enquired whether its demerger operation can qualify for the special tax regime for corporate reorganisations. The DGT has ruled that this is possible provided the operation meets the commercial definition of a total demerger and is carried out for valid economic reasons rather than purely for tax purposes.
Companies planning demergers must ensure the transaction is driven by genuine economic motives and complies with the Corporate Income Tax Law (LIS) to benefit from the special tax regime.
The tax team reviews your specific situation.
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