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V0200-22 8 February 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · escisión proporcional

Proportional demerger of a company does not breach the requirement to maintain the reduction in Inheritance and Gift Tax

A person who received company shares via donation with a tax reduction asks whether the demerger of the company affects the requirement to maintain the acquired assets. The DGT rules that a demerger does not breach this requirement, provided that the acquisition value and the right to the Wealth Tax exemption are maintained.

The question raised

Whether the proportional spin-off of the company of the shares acquired by donation from their parents constitutes a breach of the maintenance requirement provided for in the legislation approved by the Government of Aragon.

The DGT's ruling

The obligation to maintain what was acquired for ten years refers to the value of the acquisition and not to the nature of the asset. Therefore, the substitution of shares for others due to a proportional spin-off does not breach the maintenance requirement. To this end, the value for which the reduction was applied and the right to the exemption in Wealth Tax must be maintained, avoiding acts that substantially diminish the value.

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