Back to index
V2570-17 10 October 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · rama de actividad

Requirements for applying the special contribution regime for activity branches

A private individual enquires whether the contribution of their real estate leasing activity to a company may qualify for the special regime under the LIS. The DGT responds that this is possible if the assets constitute an activity branch with its own organisation and are carried out for valid economic reasons.

The question raised

Question raised 1) Whether the described operations 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

To apply the special regime for the contribution of business lines, the segregated assets must constitute an autonomous economic unit capable of operating by its own means. This requires a distinct business organization that allows for the identification of its own economic exploitation. Furthermore, the operation must be carried out for valid economic reasons, such as the restructuring or rationalization of activities, and not for the sole purpose of obtaining a tax advantage.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Book a meeting Write to the firm
Email
Contact