Skip to content
Back to index
V0985-21 19 April 2021 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial financiera

Partial financial spin-offs may qualify for special Corporate Tax regime if ownership and economic requirements are met

A holding company intends to carry out a partial financial spin-off to separate its real estate activity from its industrial activity. The DGT examines whether this operation meets the requirements for the special Corporate Tax regime, as well as its treatment regarding VAT and Transfer Tax/Stamp Duty.

The question raised

1) Whether the proposed partial financial spin-off transaction may qualify for the regime set forth in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

Partial financial spin-off may qualify for the special regime of the Corporate Income Tax Act if the segregated assets consist of majority holdings and the demerged entity maintains majority holdings in other entities or a line of business. The economic motives of risk and management separation could be valid, although this is a matter of fact. Regarding VAT, the transaction shall be subject and exempt if the company is a mixed holding company. Regarding Transfer Tax/Stamp Duty, the transaction is a restructuring not subject to the corporate operations modality and exempt in the other modalities.

Book your free first meeting