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V1112-16 21 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

Distribution of outstanding net financial expenses following a partial demerger is not permitted

A company inquired whether it could proportionally distribute undeducted net financial expenses from previous years following a partial demerger of a business line. The DGT ruled that these expenses are not transferable to the beneficiary entity.

The question raised

1. Whether it is appropriate for the consulting entity to carry out a proportional distribution of net financial expenses pending deduction from the 2012 and 2013 fiscal years that correspond to the liabilities transferred to the beneficiary company of the partial demerger.

The DGT's ruling

In partial demergers where there is no extinction of the transferring entity, net financial expenses pending deduction are not transferable to the acquiring entity. The right to deduction remains with the transferring entity, regardless of whether the liabilities that gave rise to them form part of the spun-off division. Therefore, a distribution of said expenses among the entities is not appropriate.

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