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V2259-22 27 October 2022 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · rama de actividad

Requirements for eligibility for the special regime for the contribution of a branch of activity (LIS)

The DGT states that if formal requirements are met and the operation has valid economic motives, the special regime may apply.

The question raised

Whether the described operation may benefit from 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

To apply the special regime for the contribution of a branch of activity, the contributed assets must allow for the development of an autonomous economic exploitation. The operation must comply with the requirements of Article 87.2 of the LIS and must not have fraud or tax evasion as its primary objective. The alleged economic motives could be valid, although their validity depends on the verification of the actual facts and circumstances of the operation.

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