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V0446-16 4 February 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión total

Applicability of special regime for total spin-off under proportionality and valid economic grounds

The consultant asks whether their total spin-off may benefit from the special regime of Corporate Income Tax and whether the grounds are valid. The DGT responds that, as a proportional spin-off, it meets LIS requirements and that generational succession motives are considered valid economic grounds.

The question raised

Question raised 1. Whether the special tax regime regulated in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, is applicable to the total spin-off operations intended by the consultant. And whether the motives presented are considered economically valid.

The DGT's ruling

To apply the special spin-off regime of the CIT, the operation must meet the commercial requirements of a total spin-off and must not have the primary purpose of fraud or tax advantage, whereas restructuring or generational succession motives are valid. Regarding VAT, non-applicability requires that the transferred elements constitute an autonomous economic unit capable of carrying out an activity by its own means. Regarding ITPAJD, restructuring operations under the CIT are either not subject to or exempt from tax depending on the modality. Finally, the LMV anti-avoidance rule on the transfer of securities would not apply as these are primary market operations.

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