Skip to content
Back to index
V2676-22 29 December 2022 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión total

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

A query was raised regarding whether a total demerger operation can apply the special Corporate Income Tax regime. The DGT indicates that if the operation meets the requirements of the Corporate Income Tax Act (LIS) and is carried out for valid economic reasons rather than purely tax-driven purposes, it may qualify for said regime.

The DGT's ruling

In order for a total spin-off to qualify for the special regime, it must comply with the requirements of Article 76.2.1º a) of the LIS, including the proportional allocation of values to the partners. It is not necessary for the assets to constitute business lines if the allocation is proportional. Furthermore, pursuant to Article 89.2 of the LIS, the operation must not have fraud or tax evasion as its primary objective, and must be based on valid economic reasons rather than the mere pursuit of a tax advantage.

Book your free first meeting