Back to index
V2600-20 30 July 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

Special tax regime for demergers may apply if commercial and economic requirements are met

The taxpayer asks whether a partial or total demerger of their holdings in non-resident subsidiaries can qualify for the special tax regime. The DGT rules that this is possible provided that commercial law requirements are met and the transaction is supported by valid economic reasons.

The question raised

Whether the special tax regime under Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, is applicable to the described partial spin-off operation.

The DGT's ruling

For a partial spin-off, the segregated assets must constitute a controlling interest (majority holdings) and the spun-off entity must retain majority holdings in other entities or a line of business. In a total spin-off, the partners must receive shares on a proportional basis. Furthermore, the operation must not have the primary objective of tax fraud or evasion, and must respond to valid economic reasons such as the restructuring or rationalization of activities.

Book your free first meeting