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V2233-19 20 August 2019 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

Special demerger regime requires segregated assets to constitute an autonomous line of business

A hotel company has enquired whether it can apply the special demerger regime when separating part of its assets. The DGT indicates that, to do so, the transferred assets must form a line of business with distinct organisation and management.

The question raised

Whether the special tax regime regulated in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, can be applied to the two operations presented.

The DGT's ruling

To apply the special spin-off regime, the segregated assets must constitute an autonomous economic unit (branch of activity). It is not sufficient for several establishments with their own personnel to exist; a differentiated business organization and a management model that determines autonomous economic operations are required. If the existence of such branches of activity is not proven, the special regime is not applicable.

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