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V2443-17 2 October 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión

Special spin-off regime applicable if legal requirements and valid economic reasons are met

A securities leasing and management company has enquired whether its proportional total spin-off may qualify for the special regime under the Corporate Income Tax Act (LIS). The Directorate General of Taxes (DGT) indicates that if the requirements of Article 76.2.1.a) are met and the transaction is supported by valid economic reasons, said regime is applicable.

The question raised

Whether the described transaction 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

The transaction may qualify for the special regime if it meets the requirements of Article 76.2.1.a) of the LIS. To this end, its main objective must not be tax fraud or evasion, but rather it must be carried out for valid economic reasons such as the restructuring or rationalization of activities. In this case, the purpose of avoiding future management problems through the division of assets is considered a valid economic reason.

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