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V2898-15 6 October 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

The special regime for the contribution of a line of business may be applied if valid economic reasons exist

A French multinational asks whether the contribution of its Spanish branch to a Spanish entity may qualify for the special regime under the Corporate Income Tax Act. The DGT responds that it is possible if the branch constitutes an autonomous economic unit and the operation has real economic purposes and is not merely for tax purposes.

The question raised

Question raised 1) Whether the described operation may qualify for the special tax regime under Chapter VII of Title VII of Corporate Income Tax Law 27/2014, of November 27.

The DGT's ruling

The operation is classified as a non-monetary contribution of a line of business if the contributed assets constitute an economic unit capable of operating by its own means. To apply the special regime, the activity must have previously existed in the transferor and the operation must respond to valid economic reasons, such as restructuring or rationalization, and must not have fraud or tax evasion as its primary objective. In this case, the described reasons of expansion and profitability are considered valid. Regarding negative tax bases, the acquiring entity may offset them if the contribution entails the disappearance of the branch, subject to the limitations of Article 84.2 of the Corporate Income Tax Act.

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