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V1223-18 10 May 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

Special spin-off regime cannot be applied if segregated assets do not constitute a line of business

The taxpayer inquired whether the spin-off of several properties (premises, housing, and parking spaces) into a new company for the purpose of leasing them back to the parent company allows for the use of the special tax regime. The DGT ruled that it does not, as these assets do not constitute an autonomous line of business.

The question raised

Whether the proposed spin-off would be subject to the special regime established 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 spin-off regime, the segregated assets must constitute a line of business, understood as an autonomous economic unit with differentiated material and human resources. The transfer of isolated real estate properties for subsequent leasing does not constitute a line of business pursuant to Article 76.4 of the Corporate Income Tax Law. Therefore, as this requirement of the prior existence of a differentiated business organization is not met, the special regime is not applicable.

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