Skip to content
Back to index
V2623-22 23 December 2022 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

Requirements for applying the special partial demerger regime: the existence of a business line

A query was raised regarding whether the segregation of a specific business area from a company meets the requirements for the special partial demerger regime. The DGT ruled that, to apply this regime, the transferred assets must constitute a business line capable of operating independently and that such activity must have already existed as a distinct entity within the transferring company.

The DGT's ruling

To benefit from the special regime for partial demergers, the segregated assets must constitute a line of business, understood as a set of elements capable of functioning by its own means. This concept requires that the activity previously exists within the transferring entity with a differentiated business organization. The existence of this line of business is a matter of fact that must be proven and will be assessed by the Administration.

Book your free first meeting