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V1857-20 ·9 June 2020 ·consulta-vinculante Medium impact
Tax

Total demergers may qualify for special tax regime if LIS requirements are met and valid economic reasons exist

A real estate company has enquired whether its proposed demerger project can qualify for the special tax regime under the Corporate Income Tax Act (LIS) and if its motives are considered economic. The Directorate General for Taxes (DGT) indicates that if the operation complies with commercial regulations and the allocation of shares is proportional, the regime could apply, provided its primary purpose is not tax evasion or obtaining an unfair tax advantage.

In 6 key points

How it affects those involved

Companies undergoing restructuring should ensure that demergers are driven by genuine economic motives and comply with proportional share allocation to benefit from special tax treatments.

Lifecycle

2020-06-09PublishedPublished 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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