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V0160-17 24 January 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · rama de actividad

Agricultural activity contribution may qualify for special IS regime

A physical person asks whether contributing their agricultural enterprise (farms, machinery and staff) to a limited company may apply the special IS, VAT and IIVTNU regime. The DGT responds that it is possible if accounting, economic unit and valid economic motives are met.

The question raised

Question raised 1) Whether the described transaction may qualify for the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

The contribution of a business line may qualify for the special regime under the Corporate Income Tax Act if the asset block constitutes an autonomous economic unit capable of operating by its own means. To this end, it is necessary that the contributor maintains accounting records in accordance with the Commercial Code, at least since the fiscal year preceding the contribution. Furthermore, the transaction must respond to valid economic reasons and not have the primary purpose of obtaining a tax advantage.

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