Requirements for fiscal neutrality in partial splits: need for an autonomous activity branch

An immovable property company asks whether it can carry out a partial split of assets to create three new companies without taxing capital gains. The DGT responds that the operation does not qualify as a partial split if the segregated immovable assets do not constitute distinct activity branches with separate organisational and management structures.

A partial split of assets does not trigger taxation if the segregated assets form autonomous activity branches with distinct organisational and management structures.