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V2588-14 2 October 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · cesión de intangibles

Reduction for transfer of intangibles applies as internal transaction elimination is recognised

A query was raised regarding whether the reduction under Article 23 of the CIT Act for the transfer of intangibles applies when the transaction occurs between entities within the same tax consolidation group. The DGT clarifies that, as the express prohibition found in the previous wording no longer exists, these transactions are governed by tax consolidation rules, and the reduction shall apply as the elimination of said internal transaction is recognised.

The question raised

Inquiry is made regarding the application of the reduction provided for in Article 23 of the TRLIS, following the amendment introduced by Law 14/2013, when intangibles are transferred to entities that form part of the same tax consolidation group.

The DGT's ruling

The current wording of Article 23 of the TRLIS does not prohibit the application of the reduction in transfers between entities of the same tax consolidation group. Therefore, the rules of the tax consolidation regime (Articles 72 and 73 of the TRLIS) shall apply to the income and expenses of these operations. The reduction shall be applied to the extent that the elimination of the internal transaction resulting from the transfer between the entities of the group is incorporated.

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