Skip to content
Back to index
V2649-14 7 October 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

Special spin-off regime may apply if segregated assets constitute an autonomous line of business

A company involved in electrical installations and property leasing has enquired whether its partial spin-off can qualify for the special regime under the TRLIS. The DGT has ruled that this is possible provided that the assets transferred and those retained constitute lines of business capable of operating independently.

The question raised

Whether the described operation may benefit from the special tax regime of Chapter VIII, Title VII of the Recast Text of the Corporate Income Tax Law approved by Royal Legislative Decree 4/2004, of March 5.

The DGT's ruling

To benefit from the special spin-off regime, the segregated assets must constitute an autonomous economic unit (branch of activity) that allows for the development of an economic exploitation in the acquiring entity. This concept does not require meeting the economic activity requirements of the Personal Income Tax (IRPF) for the leasing of real estate, but rather whether the set of assets and liabilities allows for functioning by its own means must be analyzed. Furthermore, the operation must respond to valid economic reasons, such as the rationalization of activities, and must not have the primary purpose of tax fraud or evasion.

Book your free first meeting