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V0655-15 23 February 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión total

Proportional total split may qualify for special tax regime

A company proposes a total split of its assets (four properties) to strengthen its financial position and improve ratios. The DGT assesses whether the transaction meets the requirements for the special tax regime under Corporate Income Tax, ITP/AJD, IIVTNU and VAT.

The question raised

1) Whether the described operation may qualify for the special tax regime under Chapter VII of Title VII of the Corporate Income Tax Law 27/2014, of November 27.

The DGT's ruling

The operation may constitute a total spin-off pursuant to Art. 76.2 of Law 27/2014 if it meets the commercial requirements of Law 3/2009. As it is a proportional spin-off, it is not necessary for the assets to constitute business lines. Shareholders resident in Spain shall not recognize income from the allocation of values and shall maintain their tax values. The application of this regime requires that the operation's primary objective is not tax fraud or evasion, but rather valid economic motives.

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