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V1762-14 4 July 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión financiera

Financial demergers may qualify for special tax regime if commercial requirements and valid economic reasons are met

A holding company has enquired whether its partial demerger of shares can benefit from the special tax regime. The DGT has ruled that this is possible provided that commercial law requirements are satisfied and the primary purpose of the transaction is not to obtain a tax advantage.

The question raised

Whether the described operation may qualify for the special tax regime under Chapter VIII, Title VII of the Recast Text of the Corporate Income Tax Law approved by Royal Legislative Decree 4/2004, of March 5.

The DGT's ruling

For a partial spin-off to qualify for the special regime, the segregated assets must consist of majority holdings and the demerged entity must maintain majority holdings in other entities or a line of business. Furthermore, the operation must respond to valid economic reasons, such as the restructuring or rationalization of activities, and must not have the primary objective of tax fraud or evasion.

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