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V1360-15 29 April 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación de rama de actividad

Aportación de rama de actividad may qualify under LIS special regime

A company asks whether transferring a real estate leasing activity to its subsidiary can qualify for the LIS special regime. The DGT confirms it can, provided the transferred assets form an autonomous economic unit and the transaction has valid economic reasons.

The question raised

Whether the special regime of Chapter VII of Title VII of the Corporate Income Tax Law may be applied to the described operation.

The DGT's ruling

To benefit from the special regime, the contribution must consist of a line of business understood as a set of assets capable of operating by its own means. The activity must have previously existed in the transferor and be capable of being developed autonomously in the transferee under analogous conditions. Furthermore, the operation must not have fraud or tax evasion as its primary objective, and valid economic reasons beyond mere tax advantage must be proven.

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