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V1858-14 11 July 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Requirements for applying the special contribution regime for activity branches

The consultant asks whether contributions of energy and measurement activity branches to subsidiaries can benefit from the special regime under TRLIS. The DGT responds that this is possible if the transferred assets constitute an autonomous economic unit capable of operating independently and have valid economic reasons.

The question raised

Whether the application of the special regime under Chapter VIII of Title VII of the recast text of the Corporate Income Tax Law is appropriate for the transaction proposed. And whether the alleged reasons are considered economically valid for these purposes.

The DGT's ruling

To apply the special regime, the transaction must be a non-monetary contribution of a branch of activity that constitutes an autonomous economic unit. This requires that the transferred assets allow for the development of an economic activity within the acquiring company and that the activity previously existed in the transferring company. Furthermore, the transaction must not have the primary objective of tax fraud or evasion, and must respond to valid economic reasons such as the restructuring or rationalization of activities.

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