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V0369-18 12 February 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión total

Total demergers may qualify for special tax regime if carried out for valid economic reasons

A medical services company has enquired whether its total demerger operation can qualify for the special tax regime. The DGT has ruled that, provided the operation meets the requirements of the Corporate Income Tax Act and serves valid economic purposes, it may benefit from said regime.

The question raised

Whether the special tax regime established in Chapter VII of Title VII of Law 27/2014 on Corporate Income Tax is applicable to the described transaction.

The DGT's ruling

If the transaction is carried out under Article 69 of Law 3/2009, it meets the definition of a total spin-off under Article 76.2.1.a) of the LIS. As there is a single shareholder, it is not required that the assets constitute business lines. However, the regime shall not apply if the primary objective is tax fraud or evasion, or if it lacks valid economic reasons pursuant to Article 89.2 of the LIS.

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