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V1102-21 ·27 April 2021 ·consulta-vinculante Medium impact
Tax

Partial demergers may qualify for special tax regime if business branches are transferred for valid economic reasons

A company has requested a ruling on whether the segregation of its aggregate and concrete extraction and production activities qualifies for the special partial demerger regime. The Directorate General for Taxes (DGT) states that for this to apply, the transferred assets must constitute a business branch and the transaction must be driven by valid economic reasons rather than mere tax advantages.

In 6 key points

How it affects those involved

Companies undertaking restructuring must ensure that demergers are motivated by genuine economic purposes and involve the transfer of distinct business branches to benefit from the special tax regime.

Lifecycle

2021-04-27PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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