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V2682-23 2 October 2023 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión total

Special spin-off regime applicable if LIS requirements are met and valid economic reasons exist

The taxpayer asks whether a total spin-off can qualify for the special tax regime under the Corporate Income Tax Act (LIS). The DGT responds that if the operation complies with the requirements of the LIS and commercial regulations, and its primary objective is not tax advantage, said regime may be applied.

The question raised

Whether the special tax regime regulated in Chapter VII of Title VII of Law 27/2014 on Corporate Income Tax is applicable to the proposed total spin-off operation.

The DGT's ruling

To benefit from the special regime, the spin-off must comply with the requirements of Article 76.2.1.a) of the LIS and the terms of commercial regulations. If the allocation of values to the partners is proportional to their shareholding, it is not necessary for the assets to constitute business lines. However, the regime shall not apply if the primary objective of the operation is fraud, evasion, or the mere obtaining of a tax advantage without valid economic reasons.

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