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V0706-25 15 April 2025 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

Fiscal neutrality not applicable in partial split if segregated assets do not form a distinct business activity

A real estate leasing company asks whether a partial split to divide its assets between two children can benefit from the fiscal neutrality regime. The DGT responds that, based on the information provided, the segregated assets do not appear to constitute a previously distinct and separate business activity, and thus the regime does not apply.

The question raised

Whether the proposed operation may qualify for the tax regime regulated in Chapter VII of Title VII of the Corporate Income Tax Act, and whether the economic motives can be considered valid for the purposes of applying the regime.

The DGT's ruling

To benefit from tax neutrality in a partial demerger, the segregated assets must constitute an autonomous economic unit (line of business) capable of operating by its own means. This unit must previously exist within the transferring entity and possess a distinct business organization. In this case, as it appears to involve isolated assets without a separate organization, the special regime of the Corporate Income Tax Act is not applicable.

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