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V2656-22 27 December 2022 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

Partial spin-off of a business line may qualify for special Corporate Tax regime under certain requirements

A pharmaceutical company has enquired whether the spin-off of its real estate leasing division meets the requirements for the special tax regime. The DGT indicates that it must constitute an autonomous economic unit and be supported by valid economic reasons.

The DGT's ruling

For a partial demerger to be tax-valid, the segregated assets must constitute a line of business that is an autonomous economic unit capable of operating by its own means. This activity must previously exist within the transferring entity and possess a distinct business organization. Furthermore, the operation must not have the primary objective of tax fraud or evasion, but rather valid economic motives such as the restructuring or rationalization of activities.

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