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V0054-18 17 January 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · rama de actividad

Contribution of an activity branch to a company may qualify for special tax regime

A furniture manufacturer asks whether transferring their business to a new company can benefit from the special restructuring regime. The DGT confirms this is possible if the activity constitutes a branch of business and the LIS requirements are met, allowing also tax benefit substitution.

The question raised

1) Whether the described operation may qualify for the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27.

The DGT's ruling

The contribution of a business line may qualify for the special regime of the LIS if the assets constitute an economic unit capable of operating by its own means. Under IRPF, if the special regime is applied, the natural person does not include income from the transfer and the holdings maintain their original values and acquisition dates. For VAT, the transfer shall not be subject to tax if it is accompanied by an organizational structure that allows for the development of an autonomous economic activity. Under ITP and AJD, the operation is a non-taxable and exempt restructuring.

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