Back to index
V1999-21 24 June 2021 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial financiera

Partial financial spin-off may qualify for the special regime if equity and line of business requirements are met

An entity inquires whether the segregation of its majority holdings in subsidiaries into a new company may apply the special regime for spin-offs. The DGT indicates that this is possible if the demerged entity maintains a line of business with its own organization and if valid economic reasons exist.

The question raised

Question posed: Whether the described operation may qualify for the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax and whether valid economic reasons exist.

The DGT's ruling

For a partial financial spin-off to qualify for the special regime, the segregated equity must consist of majority holdings and the demerged entity must retain a line of business or similar holdings. The line of business requires an organization of distinct material and human resources prior to the operation. Furthermore, the operation must not have the primary objective of tax fraud or evasion, and valid economic reasons must exist. The reasons alleged by the inquirer could be considered valid, although their validity is a matter of fact.

Email
Contact