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V1497-17 ·13 June 2017 ·consulta-vinculante Medium impact
Tax

Partial spin-off of cash reserves to a SICAV is ineligible for special tax regime

A coachbuilding company inquired whether it could perform a partial spin-off to transfer its cash reserves to a new company (SICAV) and qualify for the special tax regime. The Directorate General of Taxes (DGT) ruled that cash reserves do not constitute a separate line of business.

In 6 key points

How it affects those involved

Companies attempting to spin off liquid assets or cash reserves into separate entities to benefit from tax advantages will not be permitted, as these assets do not qualify as an independent business unit.

Lifecycle

2017-06-13PublishedPublished 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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