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V2446-17 2 October 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión total

Special tax regime for total demergers may apply if commercial requirements are met and valid economic reasons exist

The applicant asks whether a total demerger operation can qualify for the special tax regime and if it possesses valid economic reasons. The DGT rules that if the operation complies with commercial regulations for total demergers and the allocation of values is proportional, the regime may apply, provided its primary purpose is not tax fraud or evasion.

The question raised

Question raised 1. Whether the described operation may qualify for the tax regime provided 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

If the operation is carried out under Article 69 of Law 3/2009 and the partners receive shares in proportion to their previous holdings, the requirements of Article 76.2.1ºa) of the LIS are met. To apply the special regime, the operation must not have tax fraud or evasion as its primary objective, but must instead respond to valid economic reasons. In this case, the implementation of different management models, the rationalization of assets, and the facilitation of the entry of new partners are considered valid economic reasons pursuant to Article 89.2 of the LIS.

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