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V2156-21 29 July 2021 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

Requirements for applying the special partial demerger regime: maintenance of a line of business

The applicant asks whether a partial demerger, in which the parent company retains only real estate assets, qualifies for the special Corporate Tax regime. The DGT rules that, based on the facts, no line of business is maintained by the transferring entity, which prevents the application of said regime.

The question raised

Whether the proposed operation could qualify for the special tax regime regulated in Chapter VII of Title VII of the Corporate Income Tax Law. And whether the economic reasons can be considered valid for the purposes of applying the aforementioned special regime. Specifically, whether it is affected if any of the entities is considered, where applicable, a patrimonial entity; the tax consequences of the operation and the formal requirements for the application of the regime.

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