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V1892-15 16 June 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · rama de actividad

The contribution of a business line and a trademark may qualify for the special regime for mergers and demergers

It is inquired whether the contribution of a business line and the subsequent contribution of a trademark may apply the special regime of the Corporate Income Tax Act and whether the motives are economically valid. The DGT responds that this is possible provided that the requirements of economic unity and minimum participation are met, and that the alleged motives are valid.

The question raised

Question posed: Whether the proposed operations may qualify for the special regime of Chapter VII of Title VII of the Corporate Income Tax Act, and whether the motives set forth are considered economically valid for these purposes.

The DGT's ruling

The contribution of a business line may qualify for the special regime if the assets constitute an autonomous economic unit that allows for the operation to be carried out in the acquiring entity. The subsequent contribution of a trademark to a new entity may apply the special regime if the contributing entity maintains at least a 5% participation in the equity of the beneficiary. The restructuring motives to attract investors and refinance debt are considered economically valid to avoid the application of the anti-avoidance clause.

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