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V2736-14 13 October 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · rama de actividad

Requirements for the contribution of a branch of activity to the special Corporate Income Tax regime and its treatment for VAT and Transfer Tax/Stamp Duty

A company inquires whether the segregation of its rental and real estate development businesses into a new company may utilize the special Corporate Income Tax regime, whether it is exempt from VAT, Transfer Tax, and Stamp Duty, and whether it is subject to Real Estate Transfer Tax. The DGT indicates that if the contribution constitutes an autonomous economic unit and has valid economic reasons, the special regime and VAT non-applicability may apply.

The question raised

Question raised 1) Whether the described operation may qualify for the special tax regime under Chapter VIII, Title VII of the Recast Text of the Corporate Income Tax Law approved by Royal Legislative Decree 4/2004, of March 5.

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