Back to index
V2607-20 31 July 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial financiera

Financial partial demergers may qualify for special tax regime if LIS requirements and valid economic reasons are met

The taxpayer inquired whether the segregation of their majority holdings into a new company could qualify for the special tax regime for demergers. The DGT indicates this is possible provided that both commercial and tax regulations are satisfied, and the operation's primary purpose is not to obtain a tax advantage.

The question raised

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

The DGT's ruling

For a financial partial spin-off to qualify for the special regime, the segregated assets must consist of majority holdings and the demerged entity must maintain majority holdings in other entities or a line of business. Furthermore, the transaction must respond to valid economic reasons and must not have the primary objective of tax fraud or evasion. Reasons such as management optimization, investment protection, and succession planning could be considered valid, although their classification depends on the specific facts.

Book your free first meeting