Back to index
V2573-16 10 June 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial financiera

Financial partial demergers may qualify for special tax regime if a line of business is retained

An entity inquired whether the segregation of its shareholdings into another company could benefit from the special tax regime for demergers. The DGT ruled that this is possible provided the demerged entity retains either a line of business or majority shareholdings in other entities within its assets.

The question raised

Whether the described transaction may qualify for the special tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

Partial financial spin-offs may qualify for the special regime under the Corporate Income Tax Act if the segregated assets consist of majority holdings in other entities and the demerged entity maintains another line of business or majority holdings in other entities within its assets. Furthermore, the transaction must be driven by valid economic reasons and must not have fraud or tax evasion as its primary objective. Reasons such as restructuring, management specialization, or raising financing may be considered valid economic reasons.

Book your free first meeting