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V1039-16 15 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

Special tax regime for demergers cannot apply if segregated assets do not constitute a line of business

The taxpayer asks whether a partial demerger can qualify for the special regime under Corporate Income Tax. The DGT rules that it cannot, as the segregated assets must constitute a line of business with its own prior and independent organisation.

The question raised

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

The DGT's ruling

To apply the special regime for partial demergers, the demerged assets must themselves constitute one or several lines of business, which requires an organization of distinct material and human resources for each activity within the demerged entity prior to the operation. In the case presented, as there is a single economic activity and a single business organization, the tax requirements for the special regime are not met.

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