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V0091-23 23 January 2023 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · rama de actividad

Economic grounds allow special IS regime for activity branch contribution

A physical person wishes to contribute their real estate leasing activity to a company to improve management and ensure generational succession. The DGT examines whether this activity branch contribution meets the Income Tax on Companies requirements and whether the motives are economically valid.

The DGT's ruling

The contribution of a line of business may qualify for the special regime of the LIS if the assets constitute an autonomous economic unit and the activity already existed in the transferor. The proposed restructuring motives could be economically valid if they are substantiated as such. The transfer shall not be subject to VAT if an economic unit with its own organizational structure is transferred. The operation is a restructuring that entails non-subjectivity to ITP (corporate modality) and exemption in the other modalities. The non-accrual of IIVTNU depends on whether the real estate properties are integrated into the contributed line of business.

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