Skip to content
Back to index
V0194-18 30 January 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · rama de actividad

Special regime for contribution of a business line may apply when an autonomous economic unit is transferred

A group company involved in property development and leasing has enquired whether the contribution of its leasing business line to a new company can qualify for the special regime under the Corporate Income Tax Act. The DGT has ruled that this is possible provided that the transferred elements constitute an economic unit capable of operating independently and the activity was already being carried out by the transferor.

The question raised

1) Whether the described operation could qualify for the special 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

To benefit from the special regime, the contribution must be a line of business understood as a set of assets that constitute an autonomous economic unit. Holdings in other entities are included if the assigned personal means are used to manage them jointly with the activity. Only debts incurred for the organization and operation of the transferred elements may be attributed, excluding those of a generic nature. Real estate for own use is not considered part of the line of business.

Book your free first meeting